Cardano Whales Buy $136 Million in ADA: Potential for Breakout?

Cardano (ADA) has faced significant losses in recent weeks due to a sharp drawdown in the market. Despite these losses, a particular cohort of ADA holders has found an opportunity to accumulate at lower prices. 

Their actions could help support a potential breakout rally, positioning Cardano for future growth.  

Cardano Whales To The Rescue

Addresses holding between 10 million and 100 million ADA have added over 170 million ADA, worth nearly $136 million, in just five days this week. These whales have seized the opportunity to accumulate at low prices, showing optimism for a recovery. Their confidence in the future price movement could provide critical support for ADA’s price.  

The whale activity indicates that a portion of the investor base remains bullish on Cardano’s long-term prospects. With significant buying pressure coming from these larger investors, ADA may be able to push higher, provided the broader market conditions align and support the upward trend.  

The overall macro momentum of Cardano is still influenced by bearish signals, especially when analyzing technical indicators like the Ichimoku Cloud. Currently, the cloud and the baseline are hovering above the candlesticks, signaling potential resistance in the coming days. This resistance could delay ADA’s recovery as it attempts to break higher.  

Despite the buying activity from whales, Cardano could face short-term challenges in overcoming the resistance created by the Ichimoku Cloud. For a successful breakout, ADA will need to clear this resistance and gain solid support from the market. Without this, Cardano’s rally may stall before reaching its target levels.  

ADA Price Prediction: Rally Ahead

Cardano is currently breaking out of a descending wedge pattern, a technical setup that projects a potential 26% rally. Trading at $0.79, ADA needs to flip the $0.85 resistance level into support to confirm the breakout. If this occurs, Cardano could make significant gains in the near future.  

With a 26% rally in play, the target price for Cardano could reach $1.01. However, ADA might face challenges pushing past the $1.00 mark, a level it hasn’t seen for nearly three weeks. The previous resistance at $1.00 could prove difficult to breach, requiring strong market momentum and sustained investor interest.  

If ADA fails to breach and secure the $0.85 support level, it could fall back to test $0.77. This level serves as a crucial support line and the invalidation point for the current pattern. A drop below $0.77 would invalidate the bullish outlook, potentially pushing Cardano down to $0.70.