During a recent market correction, large investors, known as whales, acquired over 130 million units of Cardano [ADA]. This accumulation took place as the price dipped to around $0.30, a level that now acts as a strong support zone.
Following this significant purchase, the value of ADA surged, reaching close to $0.99. This indicates that whale accumulation played a key role in driving the price back up and maintaining its stability.
Whale Accumulation Impact and Important Price Levels
Analyst Ali revealed that whales bought over 130 million ADA during the recent market slump, displaying a strong belief in the long-term value of the asset.
Such substantial accumulation during downturns often signals optimism among individual or retail investors, given that large buyers typically have a strategic, long-haul approach.
The support level at $0.30, where the accumulation occurred, now appears to be reinforced, as ADA’s price has stabilized above $0.35.
Next critical price movements will likely be influenced by resistance levels around $0.36–$0.38, with the psychological barrier at $1.00 looming as the next milestone for the token.
Present Market Performance and Trends
Currently trading at $0.9898, ADA has seen a 6.19% uptick in the last day and an 18.47% rise over the past week. With a 24-hour trading volume of $3.11 billion and 36 billion tokens in circulation, ADA’s market cap stands around $35.39 billion.
Recent price data illustrates ADA’s weekly trading range extending from $0.773 to $1.12, showcasing robust demand and trading activity supported by positive technical indicators.
Upbeat Technical Indicators
Observing the daily chart, ADA remains above the 20-day Simple Moving Average (SMA) at $0.756, serving as a dynamic support level.
Bollinger Bands are widening, indicating increased volatility as ADA nears the crucial resistance level at $1.00.
The Relative Strength Index (RSI) currently sits at 74.66, entering the overbought territory. While this could imply short-term resistance due to profit-taking, an RSI above 70 signals a sustained bullish trend.
Furthermore, a bullish crossover in the Moving Average Convergence Divergence (MACD) with the MACD line above the signal line and a positive histogram confirms the uptrend.
On-Chain Metrics Reflect Positive Sentiment
Coinglass data reveals that ADA saw a net outflow of $2.82 million on November 27, 2024, indicating more tokens left exchanges than entered. This hints at increased accumulation by investors shifting funds to private wallets, potentially alleviating selling pressure.
According to IntoTheBlock, 70% of ADA holders are currently in profit, with only 29% at a loss. Additionally, 71% of holders have maintained their ADA investments for over a year, implying a strong commitment to the token.
ADA exhibits a 0.94 correlation with Bitcoin, closely mirroring broader market movements and further influencing its upward trajectory.