Cardano Whales Go On $600 Million Buying Spree That Could Trigger Run To $0.4

2023-11-08 12:18:14

Cardano (ADA) is one of the tokens currently in the limelight as many projects do well in the ‘Atcoin Season’ as Bitcoin’s dominance cools off. The token has rallied in recent days, and one of the reasons for this resurgence has been revealed

Cardano Whales Are Accumulating

In a post on their X (formerly Twitter) platform, blockchain analytics platform IntoTheBlock noted that investors’ confidence in the Cardano token grew in October as ADA whales and investors accumulated 1.89 billion ADA during that period. This translates to over $600 million invested in ADA tokens

Interestingly, the decision by these big holders already seems to be paying off as the majority of this accumulation is said to have taken place between the price range of $0.249 and $0.271. These big holders could be accumulating for the long term rather than moving to realize their profits as soon as possible, and these could sustain a price rally to $0.4.

Back in August, the market intelligence platform Santiment highlighted the fact Cardano was seeing its highest level in accumulation dating back to September 2022, as “whales and sharks” who were holding between 100,000 and 10 million ADA tokens had accumulated $116.1 million in ADA since May 21st.

However, the sentiment toward Cardano seemed to turn bearish in September, as data from Santiment revealed that these Cardano whales had sold or redistributed about 1.02 billion ADA during a certain period in the month

Can ADA Hit $0.4?

It remains to be seen whether this accumulation phase could trigger a run to $0.40. There is, however, no doubt that these whales dumping their tokens in a bid to realize profits would significantly affect Cardano’s resurgence

Dan Gambardello, the founder of Crypto Capital Venture, had mentioned while providing a technical analysis that Cardano’s current run could see it peak at $0.40 while almost ruling out the possibility of the token hitting the $0.45 price target before a retracement happens.

Speaking of a possible retracement, Gambardello stated that ADA could drop to around $0.29 and $0.30 based on the moving average structure

Another crypto analyst, Ali Martinez, also echoed this prediction as he mentioned in an X post that the TD Sequential presents a sell signal on the ADA daily chart with a possible correction to the $0.30 support level

At the time of writing, ADA is trading at around $0.35, up by over 1%, according to data from CoinMarketCap

ADA price sitting above $0.35 | Source: ADAUSD on Tradingview.com

Featured image from Bolsamania, chart from Tradingview.com

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