Despite the optimistic market sentiment, ADA has dropped by 2.84% in the past 24 hours. Nevertheless, the asset still maintains a weekly gain of 4.59% and has risen by 47.55% over the past month.

The increase in investor activity and the decrease in the supply of ADA on exchanges may lay the groundwork for a price reversal, pushing the asset to higher levels.

Surge in whale trading indicates rising confidence

As of the latest statistics, the Cardano network has processed 687 transactions worth over $1 million in the past 24 hours. This increase is attributed to institutional investment and whales re-holding ADA tokens. When the currency trades within a relatively narrow range, Cardano's trading volume has been increasing, indicating that ADA's price is beginning to rise.

Trades by large investors can be seen as accumulation, stimulating buying interest, which leads to price increases.

Reportedly, whales have purchased over 80 million ADA tokens in the past two days, worth approximately $85.6 million. This steady accumulation indicates growing confidence among investors regarding Cardano's long-term price prospects, paving the way for asset appreciation.

Balance between bulls and bears

The purchasing activity among various trader groups (classified by their holdings) has significantly increased.

In the past 30 days, the number of addresses holding ADA worth between $1 million and $10 million has increased by 67.29%, marking the most significant rise compared to other addresses.

This further validates the enhanced purchasing activity of market whales. Despite the rise, the market currently reflects a balance between bulls and bears, leaving ADA in a state of equilibrium. The activity distribution of major traders is evenly spread, with 95 bulls and 95 bears among the top 1% of participants.

This balance indicates a lack of decisive momentum, suggesting that the driving force behind ADA's price increase may need to come from other trader groups.

Key Levels and Price Targets for ADA

Cardano's price remains in a consolidation mode, with ADA fluctuating between $1.07 and $1.14 over the past week. A bearish head and shoulders pattern can be seen on the chart. Analysts believe that if the price rises above $1.14, this pattern will be invalidated. Therefore, if ADA can break through the resistance level on the daily chart, the price could rise to $1.63, representing a 43% increase.

On the other hand, if the price falls below the $1.00 level, it would reaffirm the bearish outlook, possibly bringing ADA down to $0.78, a depreciation of 24%. Nonetheless, ADA still retains support from an ascending trendline, minimizing the likelihood of a significant downturn.

Cardano's relative strength index (RSI) is at 49, indicating that the token is in a neutral zone and may rise. Additionally, a bullish crossover has appeared on the 4-hour MACD indicator, suggesting strong upward momentum as buyers return to the market.

ADA Price Outlook: Can Cardano Reach $2?

If a bullish trend emerges, Cardano could rise, with key price levels provided at $1.46, $1.76, and $2.04. These levels suggest ADA's price could increase by 37% to 92% from current levels. Breaking through this level could see Cardano's price climb to the previous high of $3.10.

Additionally, another analyst anticipates that, given the current market trends and adoption rates, Cardano (ADA) will rise to between $3 and $7 in the next bullish supercycle. A price of $14 is realistic for a market cap of $500 billion.

Based on market signals, including decreased sell pressure and increased whale accumulation, ADA appears poised for a rise. The reduction in short-term trading volume also suggests that prices may increase as the rest of the cryptocurrency market continues to advance.