Can Cardano Prices Rebound as Whales Buy $2.5M in ADA?

Cardano (ADA) has faced significant challenges, remaining in a notable drawdown even after experiencing a rise from recent lows around $0.30. However, recent data suggest that Cardano may be preparing for a potential rally as signs of accumulation become more pronounced.

Key Takeaways

Recent whale purchases of ADA signal renewed accumulation in the market.
Cardano's price may be undervalued, with indicators suggesting it's a good time to buy.
The price is currently testing a key support level at $0.38, with potential movement toward resistance at $0.43.
A downward shift below $0.38 could invalidate current bullish expectations.

Cardano ADA

Recent whale activity indicates a renewed interest in Cardano, with large investors purchasing $2.5 million worth of ADA. As the trading volume rises and the price stabilizes, this may present a favorable opportunity for new investors. Current market conditions suggest ADA could soon see a price rebound, although caution is advised due to the possible volatility.

Whale Purchases Generate Increased Trading Volume

According to Onchain Lens data, whales have returned to accumulating ADA, along with other cryptocurrencies like Ethereum (ETH). This activity coincided with a $7.9 million USDC deposit into the Hyperliquid exchange.

Two wallets associated with a single whale executed multiple buy orders for ADA, averaging $0.38 per ADA, amassing a total of 6.46 million ADA. This purchase was valued at approximately $2.5 million.

ADA Cardano

Source: Onchain Lens

This significant purchasing activity indicates a potential accumulation phase by informed investors, suggesting that ADA's price might be on the brink of a rally. As a result, daily trading volume surged above $600 million, although the altcoin saw an increase of less than 1% during this period.

Is Now the Right Time to Buy?

Additional data analyses indicate that now may be an ideal time to accumulate, coinciding with observed whale movements. ADA's short-term bubble risk stands at 0.659, indicating a bearish trend, which suggests the coin is undervalued.

Typically, when cryptocurrencies experience overselling, it can be an opportunity to invest. Historical data has shown that following bearish conditions like these, prices tend to bounce back, marking lows in various market cycles.

Source: IntoTheCryptoVerse

Furthermore, ADA has dropped 86% from its all-time high (ATH), confirming it's at an oversold threshold, which often signifies a reversal opportunity in financial markets. Present conditions suggest it might be an optimal time to purchase ADA, anticipating price increases.

Is ADA’s Price Holding Steady?

Currently, Cardano's price is testing the support level at $0.38, showing resilience above this mark. This level was previously a resistance point and now aligns with the whale's purchase price.

Chart analysis shows that prices are likely heading toward the upper resistance point at $0.43, potentially bolstered by whale activity and gradually improving market sentiment.

The consolidation above this support level indicates an ongoing accumulation process. However, it's essential for buyers to maintain momentum to challenge the next resistance level at $0.43. Successfully breaking through this resistance could indicate a shift toward a bullish market environment.

Cardano Trading Chart

Source: TradingView

However, if the price falls below $0.38, this could lead to the departure of weaker investors, undermining the current optimistic outlook.

Conclusion

In summary, ADA presents intriguing accumulation opportunities, yet confirmation of positive market movements is still necessary. Potential support from broader market trends would further substantiate these bullish expectations as the landscape continues to evolve.