Recent Surge of Cardano (ADA) Activity Among Whale Investors Has Catalyzed the Token's Price Movement

This article discusses the recent surge in Cardano whale activity, highlighting potential market impacts and key price levels to watch in the coming days.

The recent surge of Cardano (ADA) activity among whale investors has catalyzed the token’s price movement towards key resistance levels, sparking interest in the market.

This is evident from the latest data, which shows that a number of whales have been busy buying up the token, notably accumulating over 40 million ADA in just two days.

These large-scale investments, which came to light thanks to blockchain analytics firm Santiment, suggest a potential long-term bullish trend if price stability is maintained.

This activity is all the more noteworthy given that it comes to light amid a large price move, highlighting how investor confidence might be impacting market momentum.

Chart: Santiment

At present, ADA is trading at $0.7944, having risen from around $0.66 to clock new highs above $0.80. This move is all the more interesting when considering that these traders now hold 3.11 billion ADA.

However, while the MACD shows that momentum might be slowing, with the difference between the 12-hour and 26-hour moving averages narrowing, the coin is still in a bullish cycle.

The MACD is still in positive territory, and there is potential for it to continue moving upwards if the MACD line manages to cross above the MACD signal line.

At the moment, traders are watching key support levels, notably around $0.75.

Moreover, keeping trading volume above this figure will be essential for sustaining any bullish trajectory, especially if considering that volumes have dropped in recent days.

Crucially, ADA recently broke out of a descending channel formation, a significant technical milestone.

For sustained upward movement, it is crucial that ADA remains above the $02.75 mark.

Should prices fall below this level, traders may see a heightened risk of a larger retracement, with potential support emerging around $0.70.

Cardano’s price action over the coming days will heavily depend on market sentiment towards this support level, as a failure to hold could result in increased selling pressure.

Shifting Sentiment and Liquidity Clusters

Examining the derivatives market, notable data from CoinGlass highlights a significant long liquidation cluster around $0.789 for ADA.

As traders pile on shorts, their positions could trigger liquidations if the price rises sharply, setting off a domino effect that fuels further volatility.

This situation is amplified by the presence of short clusters on popular trading platforms such as Binance and Bybit.

With cumulative shorts set to be triggered at $0.90, the market is primed for potential rapid shifts in price.

Finally, considering the overall market sentiment, despite the initial optimism, there are signs of shifting sentiment.