2023-3-30 21:20 |
Cardano (ADA) has remained below $0.40 since mid-February. On-chain data suggest that ADA looks set to break the resistance as whale investors pile in.
Cardano long-term holders are growing in confidence as the network continues to attract whale investors.
ADA Is Attracting Whale InterestCardano (ADA) has courted considerable media attention in recent weeks. The Djed stablecoin launch and a spike in total value locked (TVL) on the native DeFi smart contract platforms appears to have reignited a price rebound.
Among other bullish factors, Cardano has recently attracted a wave of buy pressure from whale investors. After a February sell-off, a cluster of whales holding 1 million to 100 million coins has entered accumulation mode. According to Santiment, between March 16 and March 29, this strategic group of whales increased their ADA holdings by 210 million coins worth $80 million.
Cardano (ADA) Whales Accumulation, March 2023. Source: SantimentWhen whales start buying, it implies that large investors are growing increasingly confident about the future price prospects of the token. Also, they can potentially influence other investors to enter the market, ultimately triggering a price upswing.
Considering the 1 million to 100 million ADA whale cluster’s history of timing recent price downtrends accurately, ADA holders can expect a price surge in the coming weeks.
In the same vein, the recent uptrend in the number of Caradano long-term addresses confirms the bullish stance. According to IntoTheBlock, the number of long-term holders has increased considerably since early February. And notably, the number of short-term traders has also declined.
As seen below, the number of Cardano wallets that have held their tokens for more than 1 year has increased from 1.97 million on Feb 5 to 2.23 million addresses as of March 29.
Cardano (ADA) Addresses by Time Held. March 2023. Source: IntoTheBlockLong-term holders are investors who have held onto an asset for an extended period rather than trading it frequently. An increase in the number of long-term holders indicates investors’ belief in the network’s fundamental value and growth prospects.
This can create a positive feedback loop where newer investors grow confident and become more bullish themselves
Ultimately, the recent surge in Cardano whale accumulation and the growing confidence of long-term holders may lead to a price upswing.
ADA Price Prediction: $0.45 on the HorizonAccording to IntoTheBlock’s Global In/Out of Money chart, Cardano will likely surpass $0.45 in the coming weeks.
As depicted below, $0.48 is the next significant resistance for ADA. The $0.48 is the maximum price that 530,000 addresses had purchased 4 billion coins. If ADA breaks above this resistance, the rally may be impeded at $0.55, where another 351,000 addresses may look to cash out some of their 2.83 billion ADA holdings.
Cardano (ADA) Global In/Out of Money data. March 2023. Source: IntoTheBlockStill, the bears could take charge if Cardano drops below $0.35. However, at this point, 289,000 addresses that bought 4.7 billion coins can offer support.
But failure to hold this support could see ADA trend downwards to $0.31, the minimum price that 428 addresses had bought 4.1 billion coins.
The post Cardano (ADA) Looks Set to Clear $0.40, Here’s Why appeared first on BeInCrypto.
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