Cardano Whales Accumulate 300 Million ADA Amid Price Decline
Cardano (ADA) has seen a 20% price drop, yet whale investors have accumulated over 300 million ADA worth nearly $200 million, signifying confidence in recovery. The correlation with Bitcoin suggests ADA may mirror BTC’s price movements, impacting its future performance. Maintaining support at $0.62 is critical for overcoming resistance at $0.70 to avert further declines.
Cardano (ADA) has faced a notable 20% decline in price recently. This downturn has not deterred whale investors, who have accumulated over 300 million ADA, valued at nearly $200 million. Their actions indicate a strong belief in a potential price recovery as market conditions evolve.
In the last week, whale addresses, with holdings ranging from 10 million to 100 million ADA, have made substantial purchases despite the falling price. This accumulation reflects a strategic decision by these large investors who perceive the current price as a favorable buying opportunity. Such activity suggests possible expectations of a price rebound, despite the current bearish trend.
The increased accumulation by whales is significant as they can influence market movements. Their confidence in Cardano might boost the price, especially if the overall market sentiment improves. This heightened activity may indicate a forthcoming shift, aiding Cardano in recovering from its recent losses.
Moreover, Cardano’s price correlation with Bitcoin (BTC) is now 0.75, indicating that ADA increasingly moves in sync with BTC. With Bitcoin currently facing pressure, a potential decline in ADA’s price is expected if BTC continues to falter. Conversely, should Bitcoin’s price stabilize and rebound, ADA may likewise experience upward momentum in response.
Currently, ADA is priced at $0.66 after a significant drop over the past week. The prolonged downtrend has placed Cardano within a bearish phase; however, further accumulation by whales may trigger a shift in bullish sentiment. Maintaining support at $0.62 is crucial, with the potential to breach $0.70 offering a sign of recovery.
Should ADA fail to surpass the $0.70 resistance, there is a risk of retreating back to $0.62 or lower. Loss of this critical support level could lead to a dip below the $0.60 mark, thereby undermining a bullish outlook for the cryptocurrency.
In summary, Cardano’s current price decline has prompted whale investors to accumulate significant ADA holdings, indicating potential confidence in recovery. The relationship with Bitcoin suggests ADA’s price may follow BTC’s movements, whether declining or rebounding. Maintaining key support levels will be essential for a potential recovery, while failure to breach resistance may lead to further price declines.
Original Source: beincrypto.com
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