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Cardano (ADA) has experienced a significant rally, largely fueled by heightened buying activity from cryptocurrency whales.
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As ADA continues to draw attention, the market is analyzing its current standing and potential movements through various metrics.
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According to a recent analysis from CoinTag, “Increased whale activity often precedes major price shifts, which can present lucrative opportunities.”
Cardano (ADA) sees a 15% price surge driven by whale accumulation, with key support around $0.94 and potential for growth beyond $1.
Cardano Whales Drive Price Rally
Recent data from Santiment reveals that ADA whales, those holding between 10 million and 100 million coins, purchased 60 million ADA valued at over $58 million in the past week. This surge in accumulation has propelled the total holdings of this select group to 12.21 billion coins, their highest accumulation in 30 days.
This increase in whale activity serves as a strong bullish indicator. In many cases, when large investors ramp up their holdings, it sets off a chain reaction in the market, leading retail investors to join in. This ultimately creates a tighter supply on the market, which can result in higher prices.
Cardano Supply Distribution. Source: Santiment
Furthermore, on-chain indicators illustrate a correlation between the surge in whale accumulation and ADA’s current undervaluation, as highlighted by its negative Market Value to Realized Value (MVRV) ratio across varying time frames.
This specific metric is critical as it sheds light on whether an asset is trading above or below its historical average cost basis, thus indicating buying opportunities for savvy investors.
Cardano MVRV Ratio. Source: Santiment
A persistently negative MVRV ratio indicates beneficial entry points for traders, reflecting that ADA is currently undervalued in the eyes of large investors anticipating a turnaround in price.
ADA Price Prediction: Key Support Level To Watch
Currently, ADA is trading just above a key support level at $0.94, shown on the daily chart. Should whale activity persist, this support level may be reinforced, potentially paving the way for ADA to break above the crucial $1 mark.
Cardano Price Analysis. Source: TradingView
If the bullish momentum falters, and bulls are unable to protect this key support, ADA could potentially decline to $0.85, conflicting with the current optimistic outlook.
Conclusion
In summary, Cardano’s recent price movements have been significantly influenced by large-scale whale investments, indicative of bullish sentiment and potential for growth. The current undervaluation highlighted by the negative MVRV ratio suggests that investors should closely monitor ADA, particularly as it hovers around the critical support level of $0.94. The market awaits further developments, but the outlook remains promising for ADA, provided that key supports hold and accumulation trends persist.
