On Friday, June 10, Cardano (ADA) price dropped to a two-year bottom of $0.23 as the markets reacted to recent SEC court filings. However, increased whale activity over the past few days has seen ADA regain 20% as it approached $0.28 on Monday morning. Will the ADA price recovery continue in the coming weeks?
Last week, Cardano’s parent firm, Input Output Global (IOG), issued a robust response refuting the Security and Exchange Commission’s claim that ADA is a security. On-chain data shows that Cardano’s (ADA) price has started flashing green signals indicating an imminent recovery.
In the last few days, crypto whale investors have started to bet big on ADA again, while long-term investors are tuning down the sell-action.
What are the chances that the ongoing Cardano recovery will see ADA price reclaim $0.35 in the coming weeks?
Cardano Whales Are Returning to Action
After taking hawkish positions during last week’s massive price retracement, Cardano whales now appear to be returning to action. Specifically, between June 8 and June 12, ADA Whale Trasanctions Count (1M) spiked 41% from 97 to 137 daily transactions.
The Whale Transactions Count (1M) metric evaluates the trading activity of millionaire investors by tracking the number of daily confirmed transactions that exceed $1 million in value.
Given the whale’s disproportional financial power, their increased trading activity, as seen above, can soak up the sell-pressure across exchanges. It could inspire other strategic investors to believe that the bottom is in for ADA.
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Long-term Investors are Holding Out for More Gains
Despite the recent ADA price gains, long-term investors across the Cardano network are unwilling to sell. The Santiment chart below shows that since the ADA price dropped below $0.27 on June 10, Mean Coin Age across the Cardano ecosystem has been trending upward.
Specifically, on June 12, ADA Mean Coin Age hit 37.25. This is 3% up from the 36.15 that was recorded on June 10.
In simple terms, Mean Coin Age tracks the trading activity of long-term investors by evaluating how long coins in circulation have stayed in their current wallet addresses.
When Mean Coin Age increases marginally during a price retracement, as seen above, it signals growing confidence across the network.
Currently, nearly 54% of the total Cardano in circulation is controlled by long-term investors, i.e., those who have held for more than 1 year.
Hence, if the whales stay active and the majority of long-term investors HODL, the ADA price recovery will likely continue.
ADA Price Prediction: Mission to Reclaim $0.35
Considering the aforementioned factors, ADA could potentially rebound toward 0.35 in the coming weeks. However, IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data suggests that ADA must first clear the initial resistance at $0.30.
As seen below, 202,000 investors that bought 2.31 billion ADA at an average price of $0.30 could mount a sell-wall. However, if the bullish momentum prevails, as expected, the bulls could push the recovery toward $0.35.
On the other hand, the bears could invalidate the positive Cardano price prediction if ADA unexpectedly drops below the critical $0.25 support zone.
But, the 47,600 investors that purchased 697 million ADA at a minimum price of $0.26 will likely prevent that. Although unlikely, ADA could retrace further toward $0.20 if that support level is breached.
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