Amid a price correction, Cardano (ADA) whales have made significant purchases, acquiring 130 million ADA tokens. Most of these acquisitions occurred at the $0.90 mark, establishing a strong support level that has since propelled ADA’s price toward the critical $1.00 resistance.
Whale Accumulation Drives Momentum
Renowned analyst Ali Martinez suggests that such large-scale purchases by whales reflect strong confidence in ADA’s long-term growth potential. This optimism may attract retail investors who often follow whale activity. The substantial buying volume at $0.90 has fortified support near $0.87, creating a foundation for potential bullish continuation.
The psychological $1.00 mark remains pivotal. Breaking this resistance could pave the way for further price appreciation.
Current Market Trends and Performance
As of November 27, 2024, ADA is trading at $0.9898, reflecting a 6.19% gain in the past 24 hours and a 26% surge over the past week. With a 24-hour trading volume of $1.15 billion, ADA’s market capitalization now stands at approximately $35.36 billion, supported by a circulating supply of 36 billion tokens.
ADA’s weekly price range of $0.773 to $1.15 underscores strong demand and increasing market interest. Key technical indicators suggest sustained bullish momentum.
Bullish Technical Signals
- Support Level: ADA is holding above its 20-day Simple Moving Average (SMA) of $0.756, a dynamic support line.
- Bollinger Bands: The bands are widening, signaling increased volatility as ADA nears the critical $1.00 resistance.
- RSI and MACD: The Relative Strength Index (RSI) at 74.66 indicates overbought conditions, suggesting potential short-term profit-taking. However, RSI levels above 70 also confirm strong bullish momentum. Additionally, a bullish MACD crossover reinforces upward price movement.
On-Chain Insights Reflect Market Confidence
On-chain data reveals a net outflow of $2.82 million in ADA tokens, suggesting increased investor accumulation and reduced selling pressure as tokens move to cold wallets. IntoTheBlock data indicates that 70% of ADA holders are currently in profit, with 71% of them holding ADA for over a year, highlighting a long-term investment perspective.
Notably, ADA’s high correlation with Bitcoin at 0.94 underscores its alignment with broader market trends, further supporting its bullish outlook.
What’s Next for Cardano?
Breaking the $1.00 resistance could open doors to new highs, provided market sentiment remains strong. However, short-term profit-taking may lead to minor pullbacks. Investors should closely monitor macroeconomic factors and Bitcoin’s price trajectory, as they could influence ADA’s next move.
Conclusion
Cardano’s fundamentals, whale activity, and technical signals suggest strong bullish potential. However, breaking $1.00 is essential for further upside. Investors should weigh risks and opportunities before making decisions.
This article is for informational purposes only and does not constitute financial advice.
