Whale activity on the Cardano (ADA) network has been on the rise lately. It is a sign that the asset could be on its way to $2. On-chain analytics firm Santiment shows large investors’ interest increasing, which is a positive signal for the cryptocurrency market.
Surge In Whale Transactions Signals Growing Confidence
As of the latest statistics, the Cardano network processed 687 transactions worth over $1 million within the last 24 hours. This increase can be attributed to institutional investment and whales holding ADA tokens once again. Cardano transactions have been on the rise when the currency is trading in a relatively narrow range. It suggested the start of an upward trend for ADA price.
A massive surge in whale activity on the #Cardano $ADA network! In the past 24 hours, 687 transactions exceeding $1 million were recorded. pic.twitter.com/p8vzuLaFVP
— Ali (@ali_charts) December 16, 2024
Major investors’ transactions can be viewed as accumulation, which stimulates buying interest and leads to price growth.
Whales allegedly bought more than 80 million ADA tokens, which are worth about $85.6 million in the last two days. This steady accumulation shows that the investors are gaining more and more confidence in the long-term prospects of Cardano price. Thus, paving the way for the asset to move higher.
Technical Analysis: ADA Key Levels and Price Targets
Cardano price is still in a consolidation pattern and ADA is ranging between $1.07 and $1.14 in the past week. The bearish head and shoulders pattern can be seen on the chart. Analysts suggest that If the price rises above $1.14, this pattern will be canceled. Therefore, If ADA can break the resistance level on the daily chart, the price may rise to $1.63, which will be a 43% rise.
On the other hand, if the price drops below the $1.00 level, it will reaffirm the bearish outlook, which may take ADA down to $0.78, a 24% depreciation. Nevertheless, ADA retains the support of the ascending trendline, which minimizes the possibility of a strong decline.
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The Relative Strength Index (RSI) for Cardano is at 49, meaning that the token is in the neutrality zone and is likely to rise. Furthermore, the MACD indicator on the 4 hour chart has given a bullish crossover which is indicative of the rising momentum as buyers come back into the market.
Market Sentiment and Charles Hoskinson’s Vision
On the same note, Cardano founder, Charles Hoskinson, further elaborated on the platform’s plan of action for the next three years. According to Hoskinson, Cardano is on its way to achieving significant milestones such as the ratification of the community constitution and governance structure. These are the developments which are intended to make Cardano a decentralized, community-driven blockchain.
Hoskinson stated, “We are at a very critical inflection point where that dream is almost a reality. That is why in 2025, we will achieve it.” The observations have provided a positive signal regarding the long-term potential of Cardano, particularly, associated with the increasing activity of whales and market users.
ADA Price Outlook: Can Cardano Reach $2?
Cardano may be set to rally according to analysts who have provided key price levels at $1.46, $1.76 and $2.04 in the event of a bullish trend. Such levels indicate potential increases of between 37 percent and 92 percent from the current price of ADA. A break above this level could see the price climbing towards the previous high of $3.10 on Cardano.
Additionally, another analyst expects Cardano (ADA) to rise to $3 to $7 in the next bullish supercycle due to the current market trends and adoption. Gambardello pointed out that $14 is realistic with a $500 billion market cap.
Based on market signals including declining selling pressure and rising whale accumulation, ADA looks poised for gains. The reduction of short-term trading volumes also points to a possible uptick in prices, given that the rest of the cryptocurrency market continues to push forward.
