Whales Accumulate 130M ADA – Is Cardano Ready to Break $1?

• Cardano (ADA) looks set to break the $1 resistance level as large investors accumulate to the tune of 130 million ADA during the dip. 
• An analyst who rightly predicted that ADA would hit $1 before the end of the year hints that $10 could be the next target. 

Cardano (ADA) is holding strong at $1 as it surges by 4% on the 24-hour price chart and 28% on the seven-day price chart. Fascinatingly, this bullish momentum is expected to continue as whales aggressively accumulate the asset.

Price Analysis

Analyzing Santiment data, we discovered that whales made a staggering purchase of 130 million ADA during the recent dip. Analyst Ali Martinez believes this is a clear sign of confidence.

Source: Ali Martinez

According to Martinez, the whale’s acquisition could position the asset on an upward trajectory. Fascinatingly, the recent price growth, according to data, was triggered by the 34% increase in Open Interest, which now stands at $972 million.

Subjecting ADA to technical analysis, we discovered that the asset is currently trending above the 20-day Simple Moving Average (SMA) at $0.756. However, the asset had entered the overbought territory at press time as its Relative Strength Index (RSI) “sat” at 74.66. Interpreting this development, our analysts disclosed that ADA could experience a short-term pullback due to consistent profit-taking at the current level. Meanwhile, the RSI indicator also shows that there could be a continued bullish momentum.

This is confirmed by the MACD line, which currently sits above the signal line, coupled with a positive histogram.

Source: TradingView

Analyzing Coinglass data, we also found that ADA recorded a net outflow of $2.82 million on November 27. This implies that more tokens were withdrawn from exchanges than deposited. Additionally, this shows that investors are transferring assets to their self-custody wallets, which could potentially reduce selling pressure on exchanges and trigger a price surge.

According to IntoTheBlock’s data, 70% of ADA investors are currently in profit, with only 29% at a loss. Also, 71% of these holders have had the tokens for over a year, indicating that investors are optimistic about the long-term potential.

How Far Can ADA Rise?

According to Ali Martinez, Ada could hit $15 before the end of the cycle. In his submission, the analyst highlighted that ADA has recorded an impressive growth of 200% in the last three weeks. However, this is just the beginning. Throwing more light on its on-chain activities, Martinez pointed out that ADA whales have made over 100% profit in the last month, and this contributed to the over $22 billion large transactions recorded daily on the network.

Martinez also explained that the current activities are an imitation of the previous cycle. Once this continues, the asset could hit $6 in the short term. Meanwhile, the $0.82 price point was marked as the critical support level where over 48,000 addresses purchased around 1.2 billion ADA.

Coincidentally, crypto analyst Dan Gambardello also believes that ADA could hit $10. However, he identified key resistance at $1.05 and support at $0.80. Gambardello’s previous thesis, which was reported by CNF, accurately predicted that ADA would hit $1 before the end of the year. At that time, the asset was trading at $0.33.