Cardano (ADA) investors are watching closely as the price of ADA remains near a critical support level of $0.65, with recent whale activity sparking speculation of a potential bullish breakout. Over the past 72 hours, whales have made notable moves, buying up nearly 130 million ADA tokens, potentially marking a significant opportunity for investors.
Whale Activity Drives ADA Purchases
Crypto experts have reported that whales have been actively accumulating ADA, with a recent surge of purchases valued at millions of dollars. This buying frenzy is seen as an indication that these large investors are betting on the price rebound of Cardano, which has seen a notable price dip in recent days.
Price Movement and Market Impact
The substantial whale purchases seem to be making an impact on ADA’s price. The cryptocurrency has experienced a slight surge, trading at around $0.75, marking a 4% increase in the past 24 hours. Alongside this price increase, ADA’s trading volume has also risen by 10%, signaling a boost in market participation and interest from traders eager to capitalize on the lower price.
Cardano’s Technical Analysis
Technical analysis indicates a bullish outlook for ADA. Following a short consolidation phase, Cardano has broken out and is trading above the $0.75 support level. If ADA can sustain its momentum and close a daily candle above this level, experts predict a potential surge of up to 13%, with a target price of $0.85 in the upcoming days.
Key Technical Breakthroughs
Further strengthening the bullish case, ADA has managed to break above the 200 Exponential Moving Average (EMA) on the daily chart, a key indicator used by traders to identify the overall trend direction. This breakout has confirmed the uptrend, increasing optimism among ADA supporters.
Leverage and Over-Leveraged Positions
Despite the bullish signals, the market sentiment is mixed, with some traders remaining cautious. On-chain data from Coinglass reveals that there are substantial over-leveraged positions in the market. Traders are betting both ways, with long positions valued at $9 million and short positions worth $13 million, primarily around the $0.724 and $0.763 levels.
Conclusion
The recent whale activity, combined with a technical breakout and rising trading volume, suggests that ADA could be entering a new bullish phase. However, the mixed sentiment and over-leveraged positions signal that volatility could still play a role in the coming days. Investors will be watching closely to see if ADA can sustain its momentum and break through key resistance levels.
