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The recent surge in Cardano (ADA) prices highlights the growing interest among investors, with whales purchasing over 40 million tokens in just two days.
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ADA’s price increase of 23.8% within a week indicates a bullish trend as market sentiment shifts towards more optimistic forecasts.
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Crypto analyst Ali Martinez noted, “The increased buying pressure from both whales and retail investors is driving ADA’s price upward.”
Discover how Cardano’s recent whale activity and price surge could impact the cryptocurrency market, with deep insights from top analysts.
Cardano Whales Purchase 40 Million Tokens in 48 Hours
Recent trading data indicates that Cardano whales have actively expanded their holdings, acquiring more than 40 million ADA tokens in a mere 48 hours. This activity is a clear indicator of bullish sentiment in the market.
Source: X
This influx of whale purchases reflects not only their confidence in ADA’s potential but also a broader trend of vibrant activity from retail traders. Following New Year’s Eve, traders have increased their engagement with ADA, pushing prices higher.
The spike in the Relative Strength Index (RSI) from 39 to 62 signifies robust buying pressure, demonstrating that buyers are gaining control in the market.
ADA Charts Indicate Positive Market Momentum
The surge in buying activity from both whales and retail traders positions ADA favorably for continued gains. Analysts at COINOTAG note that Cardano is experiencing increased upward momentum as demand continues to rise.
Source: Santiment
As the Stock to Flow Ratio (SFR) for Cardano rises to 133.7, this indicates a trend toward scarcity, which can often lead to increased prices as demand surpasses supply.
Source: Coinglass
Moreover, about 54% of traders currently hold long positions, demonstrating overwhelming bullish sentiment in the market.
Source: Santiment
Finally, the MVRV Ratio stabilized at 1.1, indicating low selling pressure among ADA holders. This suggests that the price has ample room to grow without hitting overbought territory.
In summary, the heightened activity from both whales and retail traders signals a positive sentiment towards ADA’s future performance. If the buying momentum continues, ADA poised to retest and potentially break past the $1.2 resistance level, with aspirations to reach $1.5.
However, market volatility remains a concern; any significant downturn could see ADA dropping to approximately $0.89.
