Cardano (ADA) has experienced a significant decline in recent weeks, with the price dropping by 20%. Despite this downturn, whale addresses have shown strong accumulation, adding over 300 million ADA worth nearly $200 million.
This behavior suggests confidence in a potential recovery as broader market cues shift.
Cardano Whales To The Rescue
Over the past week, whale addresses holding between 10 million and 100 million ADA have added over 300 million ADA in the past week worth nearly $200 million. The massive accumulation occurred even as the price of Cardano fell, signaling that these large investors viewed the current price as an opportunity. This surge in whale activity coincides with a 20% price drop, which may indicate that they are capitalizing on lower prices, expecting a price rebound.
The buying activity from these whales reflects strong conviction in the future recovery of Cardano. As whales play a significant role in influencing the price action of cryptocurrencies, their increased investment is likely to bolster ADA’s price, especially if the broader market sentiment turns more positive. Their confidence could signal a shift in the market that may help Cardano recover from its recent losses.
Cardano’s correlation with Bitcoin (BTC) has been steadily increasing. Currently, the correlation stands at 0.75, meaning ADA has been increasingly moving in tandem with Bitcoin. As Bitcoin faces some downward pressure in the short term, Cardano is expected to mirror its movements, potentially pushing the price lower.
However, the increasing correlation also suggests that if Bitcoin’s price rebounds, Cardano could follow suit. The Bitcoin market has shown signs of stability, and if BTC manages to reverse its current decline, ADA may also experience an upward momentum. This interdependence could help ADA regain some of its recent losses as Bitcoin begins its recovery.
ADA Price Aims At Recovery
Cardano’s price is currently trading at $0.66, reflecting a significant 20% drop over the past week. The ongoing downtrend, which has persisted for over a month and a half, has left ADA stuck in a bearish trend. However, if the whales’ accumulation continues to fuel confidence, ADA could reverse this pattern.
ADA has managed to hold above the critical support level at $0.62. If the whales continue their support and the broader market shifts in ADA’s favor, the altcoin could break through the resistance at $0.70. If this level flips into support, it may signal the end of the downtrend and a possible rally to higher levels.
Alternatively, if Cardano fails to breach the $0.70 resistance level, the price could drop back to $0.62 or below. Losing the $0.62 support could send ADA even lower, potentially falling below $0.60 and invalidating the bullish outlook.
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Disclaimer
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