Cardano (ADA) price has soared 14% in the last two weeks to surmount the $0.40 hurdle for the first time since February. On-chain data shows how a savvy cohort of whales piling on buy pressure. But how much do the bulls have in the tank?
Cardano has made positive headlines in recent weeks by introducing new product features and bug fixes. However, according to the underlying on-chain data, the DJED stablecoin launch appears to be grabbing investor attention.
Cardano Whales Are Driving the Bull Rally
According to on-chain data compiled by Santiment, a price-savvy cohort of whales began to accumulate ADA a few days after Cardano launched the native DJED stablecoin.
The chart below shows how the whales holding balances of 1 million to 10 million ADA began buying in early February. Between Feb 2 and April 11, they accumulated 210 million coins worth approximately $84 million.
When whales accumulate a cryptocurrency, it implies growing confidence among large institutional investors. This increased demand puts upward pressure on the price and could inspire other retail investors to become bullish.
Notably, this whale cohort’s buy/sell pattern has been closely correlated to ADA price action since August 2022. ADA could experience more price upswing if this trend continues in the coming weeks.
Likewise, the Network Value to Transaction Volume (NVT) ratio further confirms this bullish narrative. According to Santiment, despite breaking above the $0.40 resistance, ADA still appears underbought around the current prices.
The chart below illustrates that the Cardano NVT ratio has flattened since early February. Between Feb 1 and April 11, the NVT ratio crashed 84% from 58.82 to a lowly 9.25.
The NVT ratio evaluates the underlying value of a blockchain network relative to the volume of trading activity on that network. When it trends downward persistently, it suggests that the underlying native token is undervalued around the current prices.
With the Cardano NVT ratio now in decline for more than two months, crypto investors could soon pile on.
In summary, the accumulation trend among well-timed whales and underbought status of ADA could see soon trigger more price gains.
ADA Price Prediction: $0.45 is Within Reach
Looking at IntoTheBlock’s Global In/Out of Money price distribution data, ADA could soon hit $0.45 if the bullish outlook plays out.
The bulls can push ahead if ADA price breaks above $0.41. Although, the cluster of 179,000 addresses holding 2.8 billion coins in this zone may look to book some profit.
But, if ADA scales that zone, it can rally toward $0.45. However, a more significant resistance of 287,000 addresses that bough 1.87 billion coins for the average price of $0.45 could stand in the way.
Still, the bears can truncate the bullish trend if ADA fails to hold its current support at $0.39. Although, that support of 179,000 addresses holding 2.8 billion coins will attempt to shore up the price.
If the bears breach that support line, then Cardano may decline toward $0.35, the minimum price where 338,000 addresses that bought 7.7 billion coins could fight back.
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