Cardano (ADA) has been facing significant price pressure, dropping 20% over the past week. However, despite the downtrend, large investors—commonly known as whales—have been accumulating ADA at an accelerated pace. This behavior suggests confidence in a potential recovery as broader market cues shift.
Cardano Whales Fuel Market Optimism
Recent data reveals that whale addresses holding between 10 million and 100 million ADA have accumulated over 300 million ADA in just a week—an investment worth nearly $200 million. This accumulation comes at a time when ADA’s price has been declining, indicating that these major investors view the dip as a buying opportunity.
Historically, whale activity has played a crucial role in determining the price trajectory of cryptocurrencies. Their growing stake in Cardano suggests strong conviction in a price rebound, especially if market sentiment turns favorable. This strategic accumulation could serve as a catalyst for ADA’s recovery.
Bitcoin Correlation: A Key Factor for ADA’s Next Move
Cardano’s price movement has become increasingly correlated with Bitcoin (BTC), with the current correlation coefficient standing at 0.75. This means ADA is largely mirroring BTC’s trends. If Bitcoin continues its short-term decline, Cardano might struggle to break its bearish pattern. However, if BTC stabilizes and rebounds, ADA could benefit from the renewed momentum.
Market analysts are closely watching Bitcoin’s next move, as any bullish reversal could trigger a similar uptrend for ADA. This interdependence highlights the importance of macro-market conditions in determining Cardano’s price trajectory.
ADA Price Outlook: Key Levels to Watch
Currently, ADA is trading around $0.66, holding above a crucial support level at $0.62. If whale accumulation persists and market sentiment shifts positively, Cardano could push towards the $0.70 resistance level. A successful breakout above this point could mark the end of its downtrend, opening the door for a potential rally.
Also Read: Cardano (ADA) Faces Critical Resistance: Will Bears Push the Price to New Lows?
Conversely, failure to break past $0.70 could see ADA retesting support at $0.62 or even falling below $0.60, which would invalidate the bullish outlook. Traders should keep an eye on whale activity and Bitcoin’s movement for further insights into ADA’s next direction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
