Cardano’s recent rally is notable for its increasing confidence in the cryptocurrency’s future, supported by investors starting to save, which suggests that Cardano is approaching critical resistance levels.
The purchase of 130 million ADA during the recent drop signals not only the cryptocurrency’s resilience but also a strategic plan to increase market stability against volatility.
“Large investor accumulations on dips can often be a precursor to price recoveries,” according to a COINOTAG spokesperson.
Cardano whales bought 130 million ADA during the price drop, pushing the cryptocurrency closer to $0.99 levels. So, can the $1 resistance level be maintained?
According to crypto market analysts, the accumulation of 130 million ADA by whales during the recent drop symbolizes strong belief in the long-term viability of Cardano. When ADA approached the $0.30 level and formed critical support, it led to a significant recovery thereafter.
Whale movements often provide important clues about market direction for retail investors, which can create optimism and prompt more investment. Accumulating large amounts of ADA during price corrections has historically created upward momentum and boosted investor confidence. With ADA stabilizing above the $0.35 level, analysts are eyeing resistance levels in the $0.36-$0.38 range, predicting that if this barrier is broken, ADA could head toward the $1 level.
Currently, ADA is trading at around $0.9898, showing a 6.19% increase over the last 24 hours. Over the past week, ADA has seen an increase of 18.47%. The token’s 24-hour trading volume is reported at $3.11 billion, indicating strong market interest and confidence among investors.
ADA’s seven-day trading range has fluctuated between $0.773 and $1.12, suggesting an optimistic trend that is being strengthened by rising demand and positive technical signals.
On the daily chart, ADA is trading solidly above the 20-day Simple Moving Average (SMA) near $0.756, which acts as dynamic support. This technical positioning is supported by the expanding Bollinger Bands, which signal increased volatility as it approaches key resistance levels.
Additionally, the Relative Strength Index (RSI) is currently at 74.66, which suggests that ADA could face a short-term correction as it has entered the overbought territory, but it is providing solid optimistic momentum. The MACD indicator is also indicating positive momentum; the MACD line is above the signal line and the histogram is confirming an upward market momentum.
According to data from Coinglass, on November 27, 2024, ADA experienced a net outflow of approximately $2.82 million, with exchange outflows exceeding inflows. This move suggests that investors are opting to keep ADA in their private wallets, thus reducing selling pressure.
According to IntoTheBlock data, 70% of ADA holders are currently in profit, with only 29% in losses. In addition, 71% of ADA holders have held their tokens for more than a year, indicating a strong long-term holding trend. ADA has a correlation of 0.94 with Bitcoin, and its price movements closely follow the overall dynamics of the market, increasing investors’ interest in potential upward momentum.