Cardano News: Whales Stacking, Time for ADA Price Pump?

The Cardano network has drawn significant attention as it witnessed the amassing of 20 million ADA tokens by large-scale investors, also known as “whales.” With these updates, cardano news saw a positive turn.

The excitement amongst Cardano fans has not only propelled the cryptocurrency’s price higher, but also has caused this accumulation spree as traders rush to store their crypto.

During this period, ADA’s price increased by 1% which indicates renewed faith by investors in the blockchain’s ecosystem.

Whale Activity Fuels Renewed Optimism

According to blockchain analytics, whales that hold between 1 million and 10 million ADA tokens have been involved in the major accumulation seen over the past two days. It’s a huge win for Cardano, as whale activity frequently serves as a first signal for market shifts ahead. These entities historically accumulate assets at scale only if they have a strong conviction that the asset will be moving up in price in the future.

But particularly noteworthy is the scale of this buying spree. This is a massive amount of capital inflow into the ecosystem, which has accumulated to over 20 million ADA tokens in such a short time.

Putting this together has pushed the price of ADA to $0.8716 at the time of writing, up from $0.8016 earlier in the day. While the rise may not look like much, it came when the markets were otherwise up and down. This highlights just how important whale behaviour is in an era of investor sentiment.

Cardano’s 24-hour trading volume has jumped to $753 million, up 48% from the previous day. As trading activity increased, as a result, many traders stepped in to add liquidity to ADA.

This is a key factor in sustaining any momentum further in the long. On the other hand, the market cap of Cardano has also now increased to $30.62 billion affirming that it is the ninth largest cryptocurrency by market cap.

Just one other key metric traders and analysts are watching closely are the volume-to-market cap ratio, which currently is 2.45%. This means more liquidity in relation to the overall value of Cardano and indicates that both retail and institutional investors are increasingly interested in the token. If this continues, the near-term price appreciation will move upward.

ADA Price Technical Analysis: Breaking Down the Charts

Technically speaking, we have a bullish continuation pattern forming from an ADA perspective. As the pattern of the 4-hour chart develops, you see a ‘falling wedge’ structure, usually a potential price reversal or continuation of the upward break.

This pattern has historically been a good indicator for ADA, with the lower boundary of the wedge as solid support. Instead, ADA has bounced off this support level and is now testing to break out against this support level and continues towards the $0.88 to $0.90 resistance zone.

If ADA price is able to break out from the wedge, it will set the stage for a rally toward the $1.00 mark. This level has important psychological importance for traders and, when breached, will probably attract more buying pressure.

As a result, if ADA price fails to break out of the wedge, the likelihood of moving back to support in the neighbourhood of $0.85 or lower remains possible.

In addition, momentum indicators depict the complexity of the current market situation with ADA. Right now, the Money Flow Index (MFI) for purchasing pressure versus distribution pressure reads 48.88.

A neutral reading suggests a tug-of-war between bullish and bearish forces, leaving the market teetering on the knife’s edge of a decisive move. This balance could be decisively turned in favour of the bulls if whale activity increases sufficiently.

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