Cardano (ADA) is finally seeing some action again, as data from IntoTheBlock shows a notable spike in whale activity. Over the last seven days, Cardano whales have moved a staggering $13.84 billion, igniting hopes for a potential price surge in the ADA token.
This surge in whale activity comes at a time when Cardano’s price has experienced a significant dip, down over 11% in the last week. Despite the whale activity, the ADA token continues to struggle, trading at around $0.4323 at the time of writing.
ADA/USD 24-hour price chart (source: CoinMarketCap)
Whale Transactions Surge Amid Price Volatility
The surge in whale activity on the Cardano network is a significant development, as large transactions exceeding $100,000 have reached their highest levels since November 2023. These transactions, totaling $13.84 billion in the last week alone, highlight a renewed interest from institutional investors and large holders in Cardano.
🐳💥 #Cardano‘s whale transactions exceeding $100K in value has exploded to the highest amount since November 8th. These spikes in whale activity historically correlate with potential price reversals. $ADA‘s market cap has shrunk -43% since March 13th. https://t.co/alFMlZ9Kns pic.twitter.com/pN21IzS0ST
— Santiment (@santimentfeed) April 29, 2024
However, despite this surge in whale activity, ADA’s price has failed to respond positively, continuing on a downward trend.
The correlation between whale activity and price movements in the cryptocurrency market is well-documented, with spikes in whale transactions often preceding potential price reversals. This recent surge in whale activity on the Cardano network suggests that a price reversal may be on the horizon for ADA. However, the extent to which these large transactions will impact ADA’s price remains uncertain, especially given the current market volatility.
Technical Analysis and Market Outlook
From a technical analysis perspective, Cardano’s price action suggests a challenging road ahead. While some analysts remain cautiously optimistic about a potential price surge, others point to key resistance levels that ADA must overcome to sustain any upward momentum.
Currently trading at $0.4323, ADA faces immediate resistance at $0.4920, with further resistance levels at $0.500 and beyond. However, a decisive decline below its critical support zone of $0.45 could signal further bearish pressure for the altcoin.
ADA/USD 24-hour price chart (source: TradingView)
Despite the surge in whale activity, Cardano’s price remains under pressure amid broader market volatility. With a decline in active ADA wallets over the past three months, investor sentiment toward the cryptocurrency appears mixed. While the influx of whale transactions offers a glimmer of hope for ADA’s price outlook, the cryptocurrency market’s overall uncertainty presents significant challenges for Cardano moving forward.
ADA/USD Trend
On the ADAUSD 4-hour price chart, the Chaikin Money Flow (CMF) trend is negative, with a rating of -0.07, suggesting that selling pressure has the upper hand. However, with the CMF moving upwards, the selling pressure may be dwindling. If the CMF shifts into the positive region, a reversal may be underway. This trend indicates that there could be a potential buying opportunity as the selling pressure weakens.
ADA/USD 4-hour price chart (source: TradingView)
Concurrently, the Relative Strength Index (RSI) moving upward with a rating of 37 suggests that the bearish pressure is waning. If the RSI continues to rise and crosses above 50, it could signal a shift towards bullish momentum in the market. This potential convergence of positive indicators may present an opportunity for traders to consider entering a long position on ADAUSD. However, if the CMF remains in negative territory and the RSI fails to break above 50, it may be wise to wait for further confirmation before taking a position.
