During a recent price correction, significant holders, known as whales, acquired more than 130 million Cardano [ADA] tokens. This accumulation took place as the price dipped to around $0.30, a level that has now solidified as crucial support.
Subsequent to this accumulation, ADA witnessed a rebound and is currently trading close to $0.99, indicating that the activity of these large holders contributed to the price recovery and market stability.
Accumulation by Whales and Important Price Thresholds
Analyst Ali revealed that whales bought over 130 million ADA tokens during the recent downward trend, showing their confidence in the long-term prospects of this asset.
Such substantial accumulations during price declines typically act as a positive signal for retail investors, as institutional buyers often have a forward-looking approach.
The $0.30 support level, where the accumulation occurred, now seems to be reinforced, given ADA’s current price stabilization and recovery above $0.35.
Resistance in the range of $0.36–$0.38 could dictate the next significant price movement, while the psychological hurdle at $1.00 represents the next milestone for the token.
Current Market Performance and Emerging Trends
As of the time of reporting, ADA was valued at $0.9898, showing a 6.19% surge in the last 24 hours and an 18.47% increase over the past week. The 24-hour trading volume reached $3.11 billion, with a circulating supply of 36 billion tokens, resulting in a market capitalization of around $35.39 billion.
Recent price data indicates that ADA’s price ranged from $0.773 to $1.12 over the past seven days.
This performance reflects strong demand and trading activity, buoyed by technical signals pointing to sustained bullish momentum.
Positive Technical Indicators Signaling Momentum
Analysis of the daily chart reveals that ADA is maintaining levels above the 20-day Simple Moving Average (SMA) at $0.756, which acts as a fluid support level.
The widening of Bollinger Bands indicates increasing volatility as ADA nears the critical resistance at $1.00.
The Relative Strength Index (RSI) stood at 74.66, indicating an overbought condition for ADA. Although this may lead to short-term resistance from profit-taking, an RSI above 70 signifies ongoing bullish momentum.
Furthermore, the Moving Average Convergence Divergence (MACD) displayed a bullish cross, with the MACD line surpassing the signal line and a positive histogram reinforcing the upward trend.
Market Confidence Evidenced by On-Chain Metrics
According to Coinglass data, ADA witnessed a net outflow of $2.82 million on November 27, 2024, as more tokens left exchanges than entered. This indicates heightened accumulation as investors move funds to private wallets, potentially reducing selling pressure.
Figures from IntoTheBlock reveal that 70% of ADA holders are in a profitable position, with only 29% experiencing losses. Moreover, 71% of holders have maintained their ADA holdings for more than a year, indicating a strong commitment to the asset.
With a correlation of 0.94 with Bitcoin, ADA’s price closely tracks broader market trends, further influencing its upward trajectory.