- Cardano (ADA) shows bullish momentum with whales accumulating $1B worth of tokens since Nov 2023.
- ADA eyes a potential breakout above $1 as it forms a falling wedge pattern and gains institutional support.
Cardano (ADA) has struggled to break past a key resistance level near $1.10 since mid-November 2024, leading to a short-term correction. However, recent price movements suggest a potential breakout, with ADA reclaiming crucial support levels and bouncing above a key falling logarithmic trend.
If bullish momentum continues, the smart contract-focused altcoin could break out of its current wedge pattern and aim for a move closer to its all-time high.
Cardano Forms Falling Wedge, Targets $1 Reclamation
ADA’s price action on the daily chart indicates a falling wedge pattern, a historically bullish formation that often leads to breakouts. Over the past few days, Cardano has been testing an important support range between $0.68 and $0.76 while forming two consecutive bullish candles. This pattern has helped ADA recover nearly 15% of its market price, bringing it back toward its overhead resistance trendline.
The short-term resistance level at $0.8121, aligning with the 23.6% Fibonacci retracement, has acted as a cap on bullish momentum. However, within the wedge pattern, ADA’s recent recovery hints at a minor rounding bottom reversal, with the Fibonacci level serving as a neckline. A successful breakout could push Cardano toward higher resistance zones, with the $1 psychological level being a key target.
Whales Continue Accumulating ADA
On-chain data from Santiment reveals that large ADA holders—wallets containing at least one million ADA—have been steadily increasing their holdings since November 2023. Over the past 15 months, these wallets have added 1.41 billion ADA tokens, equivalent to approximately $1 billion, accounting for 2.35% of the total supply.
This accumulation trend signals growing confidence among institutional and high-net-worth investors. The consistent inflows suggest that major players view ADA as an attractive long-term investment, even as the broader market experiences pullbacks. As CNF discussed earlier, analysts note a bull flag formation on the daily chart, suggesting a potential breakout. The TD Sequential indicator has also flashed a buy signal, hinting at an imminent price reversal. While ADA remains under pressure alongside the broader crypto market, strong whale inflows reinforce a bullish outlook.
Institutional Interest Grows as Grayscale Files for ADA ETF
Institutional interest in Cardano has also been increasing, with Grayscale Investments making a significant move by filing for a spot ADA exchange-traded fund (ETF). The digital asset management firm submitted its application to the New York Stock Exchange (NYSE), marking the first attempt to introduce ADA into the U.S. spot ETF market.
This development follows the SEC’s recent acknowledgment of Grayscale’s amended filing to convert its Solana Trust into a spot Solana ETF. If approved, a spot ADA ETF would allow institutional investors to gain exposure to the asset through a regulated financial product.
ADA Price Momentum and Key Levels to Watch
Following the ETF announcement, ADA saw a sharp price increase, climbing to $0.7059 before stabilizing near $0.76. Trading volumes also surged, with a 24-hour average of $1.4 billion, indicating strong market engagement.
Cardano’s fully diluted valuation has now surpassed $34.4 billion, reinforcing its status as one of the largest blockchain networks. A breakout above $0.8121 could lead to a rally toward the $1 mark, with $1.11—corresponding to the 78.6% Fibonacci level—being a potential upside target. On the downside, $0.68 remains a crucial support level. If ADA fails to hold above this range, further corrections could occur.
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