In Summary
Cardano whales accumulated 300 million ADA, worth $200 million, amidst a 20% price drop, indicating confidence in its recovery. ADA’s correlation with Bitcoin is 0.75, meaning BTC’s movements could strongly influence Cardano’s recovery or further decline.
ADA needs to break the $0.70 resistance to confirm a recovery; failure could push it below $0.62, extending the downtrend.
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Cardano (ADA) has experienced a significant decline in recent weeks, with its price dropping by 20%. Despite this downturn, whale addresses have shown strong accumulation, adding over 300 million ADA worth nearly $200 million.
This behavior suggests confidence in a potential recovery as broader market signals shift.
Cardano Whales to the Rescue
Over the past week, whale addresses holding between 10 million and 100 million ADA have added over 300 million ADA, worth nearly $200 million. This substantial accumulation occurred even as Cardano’s price declined, suggesting that these large investors see the current price as an opportunity. This surge in whale activity coincides with the 20% price drop, potentially indicating that they are capitalizing on lower prices, anticipating a price rebound.
The buying activity from these whales reflects strong confidence in Cardano’s future recovery. As whales play a critical role in influencing cryptocurrency price action, their increased investment could potentially support ADA’s price, especially if broader market sentiment becomes more positive. Their confidence could signal a shift in the market that may help Cardano recover from its recent losses
Cardano’s correlation with Bitcoin (BTC) is gradually increasing. Currently, this correlation is 0.75, meaning that ADA is increasingly moving in tandem with Bitcoin. As Bitcoin faces short-term bearish pressure, Cardano is expected to mirror its movements, potentially pushing the price lower.
However, the increased correlation also suggests that if Bitcoin’s price recovers, Cardano could follow suit. The Bitcoin market has shown signs of stabilization, and if BTC can reverse its current decline, ADA may also experience upward momentum. This interdependence could help ADA regain some of its recent losses as Bitcoin starts to recover.
ADA Price Aims for Recovery
Cardano’s price is currently trading at $0.66, reflecting a significant 20% decrease over the past week. The current downtrend, which has lasted for over a month and a half, has trapped ADA in a declining pattern. However, if whale accumulation continues to bolster confidence, ADA could reverse this pattern.
ADA has held above the crucial support level at $0.62. If the whales continue to provide support and the broader market shifts favorably for ADA, the altcoin could break through the resistance level at $0.70. If this level turns into support, it could signal the end of the downtrend and a potential rally to higher levels
Conversely, if Cardano fails to break through the $0.70 resistance level, the price could fall back to $0.62 or lower. Losing the $0.62 support level could lead to a deeper decline for ADA, potentially dropping below $0.60 and invalidating the bullish outlook.
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