Despite the optimistic market sentiment, ADA has dropped 2.84% in the past 24 hours. Nevertheless, the asset still maintains a weekly increase of 4.59% and has risen 47.55% over the past month.
Increased investor activity and a reduction in ADA supply on exchanges may lay the groundwork for a price reversal, pushing the asset to higher levels.
Surge in whale trading indicates growing confidence
As of the latest statistics, the Cardano network processed 687 transactions worth over $1 million in the past 24 hours. This growth can be attributed to institutional investment and whales holding ADA tokens again. Cardano's trading volume has been increasing as the currency trades within a relatively narrow range, indicating that ADA prices are starting to rise.
Trades by large investors can be seen as accumulation, stimulating buying interest and leading to price increases.
Allegedly, whales purchased over 80 million ADA tokens in the past two days, worth approximately $85.6 million. This steady accumulation indicates growing confidence among investors in the long-term prospects of Cardano's price, paving the way for the asset to rise.
Balance between bulls and bears
The buying activity among various trader groups (classified by their holdings) has increased significantly.
In the past 30 days, addresses holding between $1 million and $10 million in ADA have increased by 67.29%, marking the most significant increase compared to other addresses.
This further validates the enhanced buying activity of market whales. Despite this rise, the market currently reflects a balance between bulls and bears, placing ADA in a state of equilibrium. The distribution of activity among major traders is even, with 95 bulls and 95 bears among the top 1% of participants.
This balance indicates a lack of decisive momentum, meaning that the impetus to push ADA prices higher may need to come from other trader groups.
ADA Key Levels and Price Targets
Cardano's price remains in a consolidation mode, 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 may rise to $1.63, achieving a 43% increase.
On the other hand, if the price falls below the $1.00 level, it would reaffirm a bearish outlook, potentially causing ADA to drop to $0.78, a depreciation of 24%. Nevertheless, ADA still retains support from an ascending trend line, minimizing the likelihood of a significant decline.
Cardano's Relative Strength Index (RSI) is 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 may rise, providing key price levels of $1.46, $1.76, and $2.04. These levels suggest that ADA's price could increase by 37% to 92% compared to the current price. Breaking this level could see Cardano's price climb to a previous high of $3.10.
Additionally, another analyst predicts 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.
According to market signals, including a decline in selling pressure and an increase in whale accumulation, ADA appears poised for a rise. The decrease in short-term trading volume also suggests potential price increases as the rest of the cryptocurrency market continues to push forward.