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Cardano: Whale Accumulation, is ADA about to explode?
Cardano [ADA] broke out of a short-term falling channel a week ago. This breakout was accompanied by 880K USD of short liquidations within less than 24 hours, driving a strong breakout.
Another report highlights the accumulation of whales and reinforces the importance of the support level at 0.75 USD.
On-chain evidence shows some signs of contradiction. The accumulation of whales only applies to a few groups of holders, and on-chain activity has decreased in recent days.
Network activity slows down
Source: Santiment
The number of active addresses and transaction volume fell sharply on Friday, May 9.
Activity has fallen over the weekend, which is not common for trading volume but is typical for daily active addresses.
However, not all declines in activity coincide with the weekend. The number of active addresses daily at the time of writing is still higher than in April.
The Token speed has also fallen along with trading volume in the past few days. This is accompanied by a price increase, indicating reduced selling pressure and less profit-taking activity, which is a sign of Accumulation.
Source: Santiment
This idea has some evidence. In the past month, the group holding 10 million – 100 million ADA has added 1% to the circulating supply of Cardano.
This is equivalent to 296 million USD in Token value based on the price at the time of writing.
However, this whale group is the only stable buyer in the past month. The group holding 100 million – 1 billion has also increased in quantity over the past three days.
Meanwhile, other groups seem to be selling off, with only retail showing stable buying since February.
Source: ADA/USDT on TradingView
The 1-day price action chart shows Cardano fell below the range low at 0.68 USD at the end of March but has since recovered. The same support level was retested on May 8.
At the time of writing, the bulls are holding the support level at 0.8 USD.
The 20 and 50-period moving averages indicate that bullish momentum is prevailing. The next price target is resistance within the range at 0.91 USD.
The OBV increase indicates stable buying pressure, which could help ADA rise higher.
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