At the start of the year, Cardano (ADA) saw a rise in price, reaching weekly highs after bouncing back from the crucial $1 support level. This upward momentum has caught the attention of large investors known as whales, as some experts in the crypto space predict a potential rally for ADA in the near future.
Cardano Whales Increase Holdings
Back in November, Cardano hit the $1 mark for the first time in over two years, leading the way in the crypto market following the post-election boost. However, the cryptocurrency faced a significant pullback in December, shedding key support and dropping below $0.8.
Taking advantage of the year-end dip, Cardano whales acquired 160 million ADA at a discounted price. Despite the interest from major investors in ADA, some observers noted a shift towards bearish sentiment around the cryptocurrency.
With the New Year came a resurgence in ADA’s value, with a 27% increase over the past week driven by market recovery and Bitcoin’s surge towards $100,000. Starting the year in the $0.84-$0.90 range, Cardano quickly reclaimed the $1 mark by January 3.
Since then, ADA has maintained a price range between $1.05 and $1.11, returning to pre-December correction levels.
Renowned crypto analyst Ali Martinez observed a renewed interest from Cardano whales, who accumulated over 10 million ADA in the last 24 hours, indicating strong support from institutional investors. In another instance, whales purchased more than 40 million ADA in a span of 48 hours as the price of Cardano surpassed $1.
ADA’s Breakout Efforts
As Bitcoin (BTC) held firm above $100,000, Cardano attempted a breakout from a bullish pattern. Based on insights from Cardano trader Sebastian, the cryptocurrency made efforts to breach a bullish pennant formation after hitting the $1.15 resistance level on Tuesday morning.
Sebastian also highlighted ADA’s attempt to turn a crucial resistance zone into support on the ADA/BTC chart. This level, previously a significant hurdle, played a key role in the early 2024 price highs after being converted into support. “A breakout from this point could potentially propel ADA towards a bullish trend,” Sebastian suggested.
Crypto analyst Dan Gambardello, founder of Crypto Capital Venture, expressed optimism regarding Cardano’s future price movements following the inclusion of the cryptocurrency in Grayscale’s Digital Large Cap Fund (GDLC).
According to reports from NewsBTC, Grayscale had previously divested all ADA holdings from GDLC in April, causing a 12% drop in Cardano’s price and receiving criticism for underperformance. In light of recent developments, Gambardello predicted that a new wave of positive momentum is on the horizon for ADA.
Despite recent setbacks caused by a price drop in BTC, Cardano’s upward march was briefly interrupted as the entire market experienced a downturn. Following a 4% decline in Bitcoin’s price to the $97,000 level, ADA also witnessed an 8% drop.
While ADA briefly dipped to the $1.02 range from the $1.11 mark, it quickly recovered. Despite the temporary setback, Cardano remains above crucial support levels and maintains higher prices compared to the December corrections, reflecting positive trends in various timeframes.
As of the latest update, ADA is trading at $1.03, representing a 5.8% decline in the last 24 hours.
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