Despite a challenging week for Cardano (ADA), with its price plunging by 20%, whale investors have been accumulating massive amounts of the cryptocurrency. In a surprising move, large addresses holding between 10 million and 100 million ADA have added over 300 million ADA, worth nearly $200 million. This shift in investment suggests a strong belief in a potential rebound, even as ADA struggles to maintain its value.
The substantial whale activity, coming at a time of considerable price decline, shows that these large investors view the current downturn as an opportunity to purchase ADA at a discounted rate. It signals confidence that ADA could recover if broader market conditions improve.
Whales’ Influence on ADA’s Price Action
Whales have long been a powerful force in the crypto market, and their buying activity could significantly influence Cardano’s price in the coming days. As of now, ADA is trading at $0.66, down 20% from the previous week. This price drop has extended a bearish trend that has persisted for over a month. However, the surge in whale accumulation suggests that the downtrend might be nearing its end, and a recovery could be on the horizon.
The correlation between Cardano and Bitcoin (BTC) has also been rising, now at a notable 0.75. This means that Cardano is increasingly moving in sync with Bitcoin. As BTC’s movements often impact altcoins, ADA’s price could follow Bitcoin’s lead, whether it rebounds or faces further declines. If Bitcoin manages to stabilize or rise, Cardano could see a similar recovery.
ADA Price Forecast: Critical Levels to Watch
For ADA to confirm a recovery, it needs to break through the key resistance level at $0.70. If the price manages to flip this resistance into support, it could signal the start of an upward trend, potentially pushing ADA to higher levels. However, if Cardano fails to breach $0.70, it could revisit the $0.62 support. A failure to hold above this level could open the door to further declines, with ADA potentially dipping below $0.60.
Looking Ahead
As whale accumulation continues, Cardano’s future largely hinges on its ability to break key resistance levels and the broader market’s influence, particularly Bitcoin’s performance. With a large number of whales showing support at current prices, ADA might just be on the verge of a comeback—if it can hold steady through the storm.
