Cardano (ADA) has seen impressive growth recently, with its price surging by 15%, reaching $0.78. This rally comes amid strong whale activity and increasing institutional interest, particularly with Grayscale Investments filing for a spot ETF to track ADA’s price.
Whale Activity Fuels Growth
A significant factor behind Cardano’s price movement is the continued accumulation by whale wallets, each holding over 1 million ADA. According to analytics firm Santiment, these whales have amassed a total of 1.41 billion ADA (worth over $1.096 billion) since November 2023. This buying spree represents 2.35% of the total ADA supply and has contributed to a 107% price increase during the same period. As these large holders continue to accumulate during price corrections, their buying activity has created a strong foundation for future growth.
From a technical perspective, ADA has been holding well above the 200-day exponential moving average (EMA) at $0.72, suggesting a solid base for further upward momentum. Crypto analyst Ali Martinez has highlighted a breakout pattern that could push ADA towards the next resistance level at $0.83, assuming the current momentum holds.
Plomin Hard Fork and Grayscale ETF Filing
In addition to whale activity, Cardano’s recent developments add further bullish sentiment. The Plomin hard fork introduced community governance features to the platform, which enhance its long-term appeal by empowering users. This upgrade marks a significant technical milestone for Cardano.
Furthermore, Grayscale’s application for a spot ETF focused on ADA signals growing institutional interest in the asset, reinforcing the narrative that traditional finance is increasingly recognizing the value of Cardano.
Market Outlook
Despite ADA facing resistance at the $0.85 mark, it has maintained key support levels, reinforcing bullish sentiment. The token’s ability to hold steady amidst market fluctuations signals strong demand and ongoing accumulation by both retail and institutional investors.
With technical improvements, whale support, and institutional interest, Cardano is well-positioned for potential future gains. Analysts are closely watching for a potential breakout above $0.85, which could lead ADA to new price levels. While minor retracements are expected, the overall trend suggests that Cardano’s growth story is far from over.
Also read: Ethereum’s Growing Demand and Strong Fundamentals Eye $5,200 Target
