TL;DR
- Whales bought $180 million worth of ADA in the past week, potentially setting the stage for a price rally.
- Analysts see ADA poised for gains, with projections ranging from $1 to $1.50 if current support holds. However, rising RSI suggests caution as the asset nears overbought territory.
Whales on the Move Again
Cardano’s native token has performed quite well in the past 24 hours, with its price rising to $0.76 (per CoinGecko’s data). This level represents a 7% increase on a weekly scale, while some important factors signal that the rally might be just starting.
An example of this is the whales’ activity. According to the renowned analyst Ali Martinez, large investors purchased 240 million ADA last week. The stash equals over $180 million (calculated at current rates).
Accumulation of this type can encourage retail investors and smaller players to follow suit and distribute fresh capital into the ecosystem.
Additionally, buying millions of tokens from whales reduces the circulating supply of ADA, which might be followed by a price surge (assuming demand keeps its level or heads north).
Earlier this month, large investors scooped up 190 million tokens in the span of 24 hours. At the time of the accumulation, the price hovered at around $0.72, or 4% less than its ongoing rate.
On another occasion in November last year, whales bought millions of ADA when the coin’s valuations stood at around $0.90. Just a few days later, the price briefly climbed beyond $1.30.
ADA’s Next Potential Targets
Crypto X is rammed with analysts who believe ADA is about to chart substantial gains in the near future. The analyst using the moniker FOUR | Crypto Spaces claimed that the asset is currently “at the defining moments.” They said ADA has been holding strong above the $0.68-$0.70 support level, expecting a reversal towards $1.30 “with strong volume.”
“If loses this support, that I think will be the worst-case scenario,” the analyst added.
Coin Signals also chipped in. They assumed that ADA is heading for “the breakout” after bullish consolidation around the 200-day exponential moving average (EMA). The analyst set a short-term target in the range of $1-$1.50.
Meanwhile, traders should keep in mind that ADA’s Relative Strength Index (RSI) has been on the rise recently. Currently, it stands just south of the bearish zone of 70, indicating that the asset might be overbought and headed for a possible pullback.
The post Cardano Whales Fill Their Bags: ADA Bull Run Incoming? appeared first on CryptoPotato.
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