Cardano (ADA) surprises the whales: Is it a sign of a rise?

Recently, the breathless rising ADA has attracted attention with whale activities.

Cardano (ADA), for the first time since April 2022, reached $1.15 with a sharp rise in the past week. This increase was driven by reduced selling pressure from long-term investors and the buying appetite of whales. ADA could aim for even higher levels in the short term, thanks to the increasing upward momentum.

What is the current situation for long-term investors and whales?

The 217% increase in ADA's price in November caused a movement in the whales. This was also observed in the decrease in ADA's 30-day Mean Coin Age data. Mean Coin Age measures the 'age' of all coins in an asset and how long they have been held. A decrease in this metric indicates that previously inactive coins are mostly being transferred for selling purposes.

However, last week this trend reversed. According to Santiment data, ADA's Average Coin Age entered an uptrend, indicating an increase in accumulation on the network. The decrease in sales by long-term ADA investors contributed to a 10% price increase in the last seven days.

In addition, ADA whales have also increased their holdings during this period. Onchain data shows that addresses holding between 100 million and 1 billion ADA have acquired tokens worth 276 million dollars in the last seven days. The increase in whale holdings indicates confidence in the future price movement of the asset and can contribute to price increases by increasing demand in the market.

ADA price prediction: Are new highs on the horizon?

On the daily chart, Cardano's Elder-Ray Index confirms the bullish trend for the popular altcoin. Currently, the value of the indicator is 0.31. This indicator measures the strength of a trend by comparing buying and selling pressure in the market. A positive value indicates that buying pressure exceeds selling pressure and signals an uptrend.

If this trend continues, ADA could move towards $1.30, where it last traded in January 2022, by increasing its gains. However, if there is an increase in coin distribution, the price could decline to $1.09. If this level cannot be defended, ADA could trade below $1 and reach $0.92.

Cardano is showing a remarkable rally with the support of long-term investors and whales. However, the sustainability of this rise will be determined by market conditions and investor behavior.

This article does not contain investment advice or recommendations. Every investment and trading activity involves risk, and readers should conduct their own research when making decisions.