Cardano (ADA) Soars 23.80% as Whale Activity and Bullish Indicators Signal Continued Growth

Cardano (ADA) Sees Strong Surge as Whale Activity Spurs Bullish Sentiment

Cardano (ADA) has been on an impressive upward trajectory recently, bouncing from a low of $0.878 to a high of $1.119, marking a 23.80% increase on the weekly charts. This significant price surge has captured the attention of both investors and analysts, who are eager to uncover the factors driving the altcoin’s resurgence.

However, after hitting the $1.119 mark, Cardano experienced a slight retracement. As of the latest data, ADA was trading at $1.106, reflecting a 1.23% increase over the past 24 hours.

In this article, we explore the key reasons behind ADA’s recent price movement and assess its potential for further growth.

Whale Activity Sparks ADA Price Surge

A major catalyst behind Cardano’s recent price surge appears to be a sharp increase in buying pressure, particularly from Cardano whales. Popular crypto analyst Ali Martinez has highlighted the significant whale activity driving ADA’s momentum.

Cardano Whales Buy Over 40 Million ADA Tokens

Martinez’s analysis reveals that Cardano whales have acquired a staggering 40 million ADA tokens in just the past 48 hours. Whale activity often serves as an indicator of bullish sentiment, as large investors typically purchase assets when they believe the market is poised for growth.

Notably, this surge in buying pressure is not exclusive to whales. Retail traders have also been active in the market, further contributing to the upward price movement. This combined demand from both whales and retail investors paints a picture of widespread optimism in Cardano’s future potential.

Strong RSI Indicates Bullish Market Sentiment

A key indicator that further supports the theory of increased buying pressure is the Relative Strength Index (RSI). The RSI for Cardano recently spiked from 39 to 62, signaling that buyers are firmly in control of the market. A rise in the RSI over a significant margin typically indicates strong bullish momentum, reinforcing the idea that Cardano is well-positioned for additional gains.

The increased RSI, along with rising whale and retail activity, suggests that ADA’s price could continue to climb in the near future. This heightened market confidence points to a sustained uptrend in the altcoin’s price.

Chart Analysis: A Look at Cardano’s Bullish Momentum

Technical analysis of Cardano’s price charts supports the case for further price gains. As KriptoNovini.bg notes, ADA is currently experiencing a strong upward momentum, fueled by growing demand for the altcoin.

Key data points, such as the Stock to Flow Ratio (SFR) and MVRV Ratio, provide deeper insights into the market dynamics:

1. Stock to Flow Ratio (SFR) Hits 133.7Cardano’s SFR has climbed to 133.7, indicating that ADA is becoming increasingly scarce. As demand continues to rise, the limited supply of ADA is likely to drive the price upward. A higher SFR often signals that demand is outpacing supply, a situation that can result in sustained price increases.

2. Long Positions Dominate Market SentimentAnother sign of bullish sentiment is the dominance of long positions in the market. According to the latest data from Santiment, 54% of traders are holding long positions on Cardano. When long positions outweigh short positions, it indicates that the majority of traders are confident that the price will continue to rise, further strengthening the case for continued bullish momentum.

3. MVRV Ratio Indicates Low Selling PressureCardano’s Market Value to Realized Value (MVRV) Ratio has settled at 1.1, which suggests that selling pressure is relatively low. When the MVRV ratio is around 1.1, it implies that profit-taking behavior is not widespread, leaving the price room to grow before reaching overbought levels.

Is Cardano Positioned for Further Gains?

The combination of increased whale activity, rising retail interest, and positive technical indicators suggests that Cardano could be poised for further price appreciation. With ADA’s market sentiment strongly favoring buyers, the altcoin appears well-positioned for additional upside movement.

ADA Price Targets: What’s Next for Cardano?

If the buying momentum continues, ADA could target the $1.2 level, where it has faced multiple rejections in the past. A breakout above this resistance would likely propel Cardano to $1.5, marking a significant milestone in its recovery.

However, it’s essential to consider potential downside risks. In the event of a market correction, Cardano’s price could dip to the $0.89 range. This would represent a lower support level and might trigger a temporary pause in the uptrend.

Conclusion: Cardano’s Bullish Outlook in the Short-Term

Cardano is currently experiencing a surge in buying activity, with both whales and retail traders showing strong demand for the altcoin. The rise in key market indicators such as RSI, SFR, and MVRV suggests that ADA is on track for further growth.

Despite a slight retracement in the daily charts, the overall market sentiment remains bullish. If the current trend continues, Cardano could see further price gains, potentially testing the $1.2 resistance level and beyond.

Georgi Minev publication: "Cardano (ADA) Soars 23.80% as Whale Activity and Bullish Indicators Signal Continued Growth" was written for 24crypto.news

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