ADA Whales Are Buying: Can Cardano Price Soar 165%

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market trends and patterns. The recent surge in Cardano (ADA) price is nothing short of remarkable, especially given its five-week streak of consecutive gains this year – a feat not easily achieved in the volatile world of cryptocurrencies.

For the initial time in 2021, Cardano‘s price has increased for five consecutive weeks straight, fueled by the extended crypto market rally and large investors (whales) amassing ADA. However, as bullish energy wanes, will the price of ADA surge by approximately 165% to challenge its previous peak at $3.10?

Cardano Price Boosted By Whale Purchases

In the last five weeks, the price of ADA has surged, peaking at $1.3230, a level not seen since January 2022. This month alone, the coin experienced a staggering 450% increase compared to its lowest point in 2023.

Recently, the rise in the value of Cardano has sparked a significant upsurge in large investors (whales) purchasing Cardano tokens. Statistics indicate that these big investors have amassed a total of $276 million worth of Cardano tokens so far, and this trend might persist as the altcoin market gains momentum. Moreover, one analyst pointed out that within the last 24 hours, whales acquired approximately 100 million ADA tokens.

It’s worth noting that an increasing number of individual investors, eager to capitalize on the current market surge, are investing in Cardano. According to CoinCarp data, the number of ADA holders has surged past 3.5 million.

ADA Price Could Waver Before Spiking To $3.10

Based on current technical analysis, it’s possible that the price of Cardano might experience some fluctuations or a minor dip, followed by a resumption of its upward trend.

The weekly graph indicates that the price has encountered some obstruction at approximately $1.3230. This level aligns with the 38.2% retracement point. Additionally, it appears to be developing a typical doji candlestick figure. A doji is a pattern created when an asset opens and closes at the same price, characterized by a tiny body and long upper and lower wicks. This pattern is often associated with potential reversals.

As a researcher studying the Cardano market trends, my analysis indicates a plausible scenario where the price could initially dip towards the psychologically significant level of $1 for a retest. Following this, I anticipate an uptrend resumption. Furthermore, there’s a possibility that the price may reach $0.8090, which aligns with the neckline of the triple-bottom pattern. Lastly, it’s important to note that the Relative Strength Index (RSI) has reached an overbought state at 85, suggesting potential market saturation or correction in the near future.

In simpler terms, a “break and retest pattern” is a frequently used strategy in trading markets. If this pattern emerges, there’s a chance it could first bounce back to around the 50% retracement point, which is approximately $1.66. A significant surge of up to 165% towards its record high might follow, but whether or not that happens depends on whether the current bullish trend in the cryptocurrency sector persists.

If the price falls below the base line (neckline) of the triple-bottom chart formation, then the bullish prediction will no longer hold true. This decline might lead to a retesting of the lowest price point seen so far this year at $0.2480.

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2024-12-06 16:00