Cardano (ADA) has recently experienced a notable decrease, with a 20% decline in its price. Despite this setback, large whale addresses have been actively accumulating, acquiring over 300 million ADA valued at approximately $200 million.
This surge in accumulation by whale addresses suggests a strong belief in the potential for a rebound as market trends shift.
Whales Boost Cardano Amidst Market Downturn
In the last week alone, whale addresses holding between 10 million and 100 million ADA have accumulated over 300 million ADA, amounting to nearly $200 million. This significant accumulation occurred amidst a drop in Cardano's price, indicating that these big investors perceive the current price levels as an attractive opportunity. The increased whale activity coincides with a 20% price decrease, indicating their strategy of taking advantage of lower prices with expectations of a recovery.
The buying spree by these large investors showcases their confidence in Cardano's future rebound. Given that whales wield considerable influence over cryptocurrency price movements, their heightened involvement is likely to strengthen ADA's price, especially if overall market sentiment becomes more positive. Their confidence hints at a potential market shift that could aid Cardano in recovering from recent losses.
Cardano Whales' Investment Behavior. Source: Santiment
Cardano has been witnessing a growing correlation with Bitcoin (BTC), currently standing at 0.75. This correlation implies that ADA has been increasingly moving in sync with Bitcoin's price trends. As Bitcoin faces some downward pressure in the short run, Cardano is anticipated to mirror these movements, potentially pushing its price downward.
Nevertheless, the escalating correlation also suggests that if Bitcoin's price rebounds, Cardano might follow suit. With signs of stability in the Bitcoin market, a potential reversal in its current decline could propel ADA's price upwards. This interconnection might assist ADA in recovering some of its recent losses as Bitcoin initiates its upward trajectory.
Bitcoin and Cardano Correlation. Source: TradingView
ADA's Price Targets Recovery
Currently trading at $0.66, Cardano's price has witnessed a substantial 20% decline over the past week. The sustained downtrend, persisting for over six weeks, has kept ADA in a bearish trajectory. However, should the ongoing accumulation by whales instill confidence and market sentiments favor ADA, the altcoin could break past the resistance at $0.70. A successful breach of this resistance level, turning it into support, might signal the end of the downtrend and potentially pave the way for a rally to higher levels.
On the other hand, a failure to surpass the $0.70 resistance could result in a price retracement to $0.62 or below. A breach of the critical support at $0.62 might lead ADA lower, possibly dipping below $0.60 and casting doubt on the bullish prospects.
Cardano Price Outlook. Source: TradingView