Cardano has seen a significant surge in ADA transactions exceeding $100,000, indicating a rise in buying pressure. Despite recent bearish momentum affecting ADA's price, smart whales are accumulating ADA, suggesting confidence in its bullish potential. Historical patterns show that periods of consolidation like this often precede significant price rallies for ADA.
In the past 24 hours, Cardano has witnessed a notable increase in bullish positions being liquidated, totaling approximately $39,000. However, smart whales are taking advantage of this bearish sentiment by using it as an opportunity to accumulate more ADA. Data from IntoTheBlock supports this trend, revealing a significant uptick in large transactions, with a 53% increase within a week.
Santiment's latest findings further reinforce the notion of heightened interest in ADA, with the volume of transactions exceeding $100,000 doubling compared to typical levels seen throughout 2024. This surge in large transactions could potentially strengthen ADA's buying pressure in the days ahead.
Historically, ADA has experienced extended periods of consolidation before witnessing significant rallies. For instance, in late 2019, Cardano maintained a stable trading range for about three months before experiencing a notable surge. Similarly, last summer saw ADA's price hovering between $0.25 and $0.30 before an October rally led to substantial price movements.
Currently, ADA's price is hovering around $0.46, facing resistance near the EMA200 level on the 4-hour price chart. The next moves for ADA's price remain uncertain, with potential scenarios including a bullish breakout above $0.46 towards the 50-day SMA at $0.51 and possibly higher, or a bearish downturn below key support levels.