Cardano Taps 264% Surge in Netflows, Will ADA Price Start Moving?

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As a seasoned analyst with years of experience in the crypto market under my belt, I find the recent surge in Cardano (ADA) netflows particularly intriguing. Having witnessed countless bull and bear runs, I can confidently say that this 264% increase in large holder netflows is indeed a sign of accumulation by whales – a trend we often see during market dips or prolonged consolidation phases.

Based on data from IntoTheBlock, there has been a significant increase of 264% in the net inflow of Cardano (ADA) this week. This large holder netflow metric gives us an understanding of how the positions of major investors, or “whales,” have changed within a specific time period.

As a researcher observing the cryptocurrency market, I’ve noticed an increase in netflows with Cardano, which could be indicative of large-scale investors, often referred to as “whales,” amassing more tokens. This trend seems particularly prominent during market dips or extended periods of consolidation, as whales tend to capitalize on such situations by accumulating more assets.

Although a 264% increase in large holder net inflows could be a promising sign, it doesn’t automatically lead to an immediate price hike. If the positive trend persists and there is continued ADA investment, the price could potentially start mirroring growing demand. Consistent strong inflows might hint at upcoming price increases for major cryptocurrencies, as accumulation over time can create buying pressure, causing prices to escalate.

ADA price action

At the time of writing, ADA was down 3.2% in the last 24 hours to $0.344. 

In April, ADA chose not to initiate a consolidation period. For quite some time, the range trading of ADA has been ongoing, leaving many traders searching for indications of a breakout. If there’s a substantial surge beyond significant resistance levels, it could set the stage for a possible upswing, particularly if the overall investor sentiment remains positive towards Cardano.

To move beyond its existing trading limits, experts are keeping an eye on significant price thresholds for ADA. The daily moving averages at 50 and 200 stand at $0.354 and $0.40 respectively, serving as potential resistance points that ADA must overcome to validate a short-term bullish breakout. Conversely, it’s crucial for the price of ADA to maintain above the $0.27 and $0.3 support levels to avoid additional drops.

As an analyst, I’m observing a notable resistance level that has been previously mentioned. Should the market breach this barrier, it could ignite a new buying frenzy, particularly if the inflow of funds persists at its current pace.

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2024-10-24 18:18