Cardano whales have been active in the market lately and as per recent news, they have reportedly bought 160 million ADA during a price plunge.
This acquisition has taken their total assets to 12.16 billion ADA within a week. Cardano price noted accumulation after it dropped down below $1, this created a chance for large investors to accumulate.
The latest data shows that the whales holding between 10 million and 100 million ADA took part in this accumulation.
Their buying activity followed a correction in ADA price, which had dropped to $0.9100 on December 9. The subsequent rebound and price stabilization made it possible for these holders to strengthen their stand.
Cardano Price Rebounds Amid Volatility
The price of Cardano fluctuated as it tried to break through the $1 psychological level. After falling to $0.9100, the crypto recovered sharply and was trading at $1.0034 the same day.
The bullish momentum remained strong, and ADA spiked to $1.1819 before facing resistance.
– Advertisement –
However, the 4hr MACD indicator portrays a bearish signal that suggests that the prices may decline further.
The MACD line (blue) is still below the signal line (orange),with the histogram bars pointing to slightly negative values, signaling ongoing selling pressure.
A reversal that occurs may need a higher buy volume to cross the MACD line above the signal line for the bullish signal.
In addition, the Relative Strength Index (RSI) is also indicating weak momentum as it stands at 45.33.
This level indicates a neutral-to-bearish sentiment as it is still below the halfway mark at 50. The RSI is slowly moving upwards but yet to have strong buying pressure, therefore the bullish pressure is limited.
A move above 50 would indicate further recovery while a drop could shave ADA to below 30 which is oversold.
Cardano News: Large Transactions Fuel Accumulation Trend
This rise in whale activity is in tandem with a rise in large-value transactions on the Cardano network.
More than 687 transactions that involved amounts above $1 million were processed during the recent dip, as per Cardano news data.
These transactions were mainly due to whales taking advantage of the opportunity to acquire ADA at a lower price.
Such patterns of accumulation are not new in the Cardano ecosystem. Earlier in the year, large holders bought ADA for $110 million expecting the price to increase.
Likewise, in November there was another phase of accumulation where whales purchased 130 million ADA during market correction.
These Cardano news trends are in line with the large investors’ move to seize opportunities that arise when prices drop for long-term benefits.
Bearish Sentiment Persists Despite Long-Term Optimism
Despite the current bearish sentiment towards Cardano price, the ecosystem is still able to garner investor interest.
From the 18th of December there is a negative weighted sentiment score of -0.786 which implies that the market is currently subdued.
However, analysts are still bullish on the future of Cardano and some of them expect the price to rise to $10 in the next year.
At press time, Cardano (ADA) price was trading at $1.05, down 4% in the last 24 hours. The current crypto market cap is at $36.83 billion, trading volume in the last 24 hours is $1.61 billion which has increased by 3.46%.
ADA had a slight slide to $1.02 but is now on the rise again to $1.049 as the buying pressure looks to be growing once more.
Cardano price’s future can be determined by the ability of the current accumulation by whales to propel price past the resistance levels.
