On-Chain Metrics Reveal Cardano Whales Are ‘Buying The Dip’ – Details
2024-12-19
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Cardano (ADA) has been through a rollercoaster of volatility, with the price experiencing significant ups and downs over recent weeks. After hitting a local top of $1.32, ADA retraced over 30%, dropping to $0.91 before returning to a critical support level. This price action has left investors speculating whether the current recovery marks the start of a new bullish phase or simply a temporary pause before further downside.
Top analyst Ali Martinez recently shared key insights on X, leveraging Santiment metrics to shed light on whale activity driving Cardano’s market movements. According to Martinez, large ADA holders began taking profits as the price rallied from $1.15 to $1.33. However, the story shifted dramatically as ADA dropped below $1, with whales accumulating again at the $0.91, signaling renewed confidence in the token’s potential.
With whale activity and market dynamics heating up, Cardano has returned to a pivotal price range that could define its trajectory in the coming weeks. Investors are now closely watching whether this accumulation phase will fuel a sustainable rally or if further consolidation lies ahead for ADA. One thing is certain—Cardano remains a token to watch as volatility continues to shape its price action.
Data Reveals Cardano Whales Behavior
The past few weeks have been highly volatile for Cardano (ADA), reflecting the broader market’s unpredictable movements and the strategic plays of smart money. ADA has become a focal point for large investors making calculated moves as the market evolves.
Top analyst Ali Martinez recently highlighted data from Santiment that underscores the pivotal role of whale activity in shaping ADA’s price action. Martinez revealed that Cardano whales began offloading their holdings as the price rallied from $1.15 to $1.33, locking in significant profits. However, as the price dropped sharply to $0.91, these same whales re-entered the market, purchasing an impressive 160 million ADA during the dip.
This buying spree has sparked optimism, suggesting that smart money views Cardano as bullish over the coming months. Such activity often indicates confidence in the asset’s potential to rebound and possibly outperform. However, it’s crucial to consider an alternative perspective. This accumulation phase might also serve as a short-term liquidity strategy designed to attract retail investors into ADA, potentially setting the stage for another wave of profit-taking by larger holders.
As ADA hovers near critical levels, its next moves will likely depend on how these dynamics unfold. Whether this is a prelude to a sustained rally or a tactical maneuver by smart money, Cardano remains a key asset to watch in the weeks ahead.
Price Holding Above $1
Cardano (ADA) is trading at $1.04, marking a swift recovery after spending only a few days below the critical $1 mark last week. This rebound showcases strong buying interest around the $1 level, which has historically acted as a psychological and technical support zone.
If ADA manages to sustain its position above $1 in the coming days, the next target lies around $1.20—a price level that previously triggered significant selling pressure. Reclaiming this level would confirm bullish momentum and signal buyers are ready to challenge higher resistance zones.
For ADA bulls to maintain momentum and drive the price higher, breaking and consolidating above the $1.20 mark is crucial. This would demonstrate the market’s strength and potentially pave the way for a broader rally. However, failing to claim $1.20 could result in another period of consolidation or even a pullback, as sellers may step in to defend this resistance level.
With recent whale accumulation adding bullish sentiment, ADA’s ability to hold above $1 and target $1.20 will likely define its short-term trajectory. Traders will closely monitor these levels to gauge whether Cardano can sustain its recovery and regain upward momentum.
Featured image from Dall-E, chart from TradingView