Cardano (ADA) has recently caught the attention of large-scale investors, also known as ‘whales.’ Crypto analyst Ali, leveraging on-chain data, has observed a significant uptick in large ADA transactions, typically over $100,000, in the past three months.
Ali noted that this growing trend suggests a heightened interest from institutional players and high-net-worth individuals in ADA. The analyst further disclosed that such whale activities have often been precursors of imminent price movements.
#Cardano | In the last three months, there’s been a significant increase in $ADA transactions over $100,000, reaching new highs consistently.
This surge points to growing interest in #ADA from institutional players and whales, which is usually a precursor to price spikes. pic.twitter.com/APczM2PGxM
— Ali (@ali_charts) December 4, 2023
Notably, while transactions can significantly impact a crypto’s market dynamics, when whales accumulate an asset, it often reduces circulating supply, creating potential upward pressure on prices.
Conversely, when they sell, it can result in a sudden increase in supply, leading to price drops. In ADA’s case, the recent whale activities have coincided with a positive price trajectory.
ADA Bullish Trajectory And Market Outlook
ADA’s market performance has mirrored the growing whale interest. In the last 24 hours alone, the crypto asset has experienced a 2.2% increase, and over 5% in the past week.
Although ADA has seen some retracement from its recently achieved peak above the $0.41 mark, it currently maintains a steady position in the $0.40 zone. This bullish trend is further supported by a surge in ADA’s trading volume, which has doubled from $250 million to over $500 million in a week.
This increase in trading activity and price aligns with the predictions of another analyst, Dan Gambardello. Gambardello has identified bullish setups in Bitcoin, Ethereum, and ADA, projecting that ADA could climb to $0.45 in the short term, with a longer-term target of $0.80-$0.85.
The analyst attributes his optimistic forecast to the growth and resilience of the Cardano ecosystem, even amid the recent broader market’s bearish trends.
GROUNDBREAKING MOMENT: Bitcoin, Cardano, Ethereum Setup For BULL MARKET https://t.co/cPfZzIVCxh
— Dan Gambardello (@cryptorecruitr) December 4, 2023
Recent data from DeFiLlama reveals a notable uptick in Cardano’s ecosystem, with its Total Value Locked (TVL) experiencing over 20% growth in the past month, currently standing at $275 million.
Although this figure is below its March 2022 peak of over $300 million, the ecosystem’s approach toward this previous high point reflects its resilience, as indicated by Gambardello amid the recent bearish market sentiments.
Cardano’s Ecosystem: A Catalyst For Future Growth?
Gambardello’s enthusiasm for Cardano extends beyond its current market performance. The analyst believes that the Cardano ecosystem’s development during the bear cycle positions it for significant growth in the future.
Gambardello predicts that Cardano could soon account for 1% of the total crypto market capitalization. Such a milestone would be a testament to the asset’s ecosystem robustness and innovation, potentially leading to ADA’s substantial rise in the next bull run.
Notably, Gambardello isn’t the only analyst predicting a bullish future for ADA. In a recent post on X, Ali highlighted ADA’s presence in a crucial demand zone. The analyst pointed out that the price levels around $0.37 to $0.38 have seen substantial buying activity, with over 166,470 wallets acquiring ADA in this range.
#Cardano sits at a key demand zone between $0.37 and $0.38. Here, 166,470 wallets acquired 4.88 billion $ADA.
With minimal resistance ahead and solid support below, remaining above this zone could pave the way for $ADA to climb to new yearly highs. Still, watch out, as losing… pic.twitter.com/GDjhspFSVr
— Ali (@ali_charts) November 27, 2023
Ali interprets this strong buying interest as an indication of a solid support level for ADA. According to his analysis, ADA is poised for an uptrend with little resistance ahead, potentially exceeding its yearly high of $0.4518.
Despite ADA recently surpassing and seemingly respecting these key demand zones, its price has only reached a peak of $0.41 so far, not quite breaching the $0.45 mark.
However, given the surge in whale activity and the bullish sentiment enveloping the global crypto market, reaching and possibly surpassing the yearly high remains a plausible outcome.
Featured image from Unsplash, Chart from TradingView