Cardano (ADA) has experienced notable losses recently as the market faced a sharp downturn. However, a specific group of ADA holders has seen this as an opportunity to accumulate more at reduced prices.
This strategic move by the whales could potentially spark a breakout rally for Cardano, setting the stage for future growth.
Cardano Whales Step Up
Addresses with ADA holdings ranging from 10 million to 100 million have increased their holdings by over 170 million ADA, equivalent to nearly $136 million, within just five days this week. These whales have taken advantage of the lower prices to build their positions, displaying optimism for a potential recovery. Their strong belief in the future price movements might offer crucial backing for ADA's price.
The increased activity by the whales suggests that a segment of investors remains positive about Cardano's long-term potential. With substantial buying pressure from these major players, ADA could potentially climb higher if the overall market conditions support an upward trajectory.
Cardano's macro momentum is currently affected by bearish signals, especially as shown by technical indicators like the Ichimoku Cloud. Presently, the cloud and baseline are situated above the candlesticks, indicating probable resistance in the upcoming days. This resistance level could hinder ADA's recovery attempts as it strives to move higher.
Despite the notable buying spree by whales, Cardano might encounter immediate obstacles in surpassing the resistance posed by the Ichimoku Cloud. To achieve a successful breakout, ADA must overcome this resistance and garner strong support from the market. Without this backing, Cardano's rally could potentially hit a roadblock before reaching its projected levels.
ADA Price Forecast: Rally on the Horizon
Cardano is presently breaking out from a descending wedge pattern, a technical formation that forecasts a possible 26% surge. Trading at $0.79, ADA needs to flip the resistance at $0.85 into a support level to confirm the breakout. If this transition happens, Cardano could witness significant growth in the near term.
With a projected 26% surge, Cardano's target price could potentially hit $1.01. Nonetheless, ADA might encounter difficulties in surpassing the $1.00 milestone, a level it hasn't touched in almost three weeks. Overcoming the previous resistance at $1.00 could be challenging, necessitating robust market momentum and sustained investor engagement.
In the event that ADA fails to break through and secure the $0.85 support level, it could retrace back to test the $0.77 mark. This level acts as a crucial support line and the potential reversal point for the current pattern. A drop below $0.77 would negate the bullish outlook, possibly leading Cardano down towards $0.70.