Cardano Price Soars 76% — Whales Return, But Overbought Risk Looms
2024-11-10

Cardano ADAUSDT has experienced a transformative week, marking a sharp departure from its three-month-long consolidation phase due to bearish momentum since October. 
Often called a “third generation cryptocurrency,” Cardano has rallied 76% this week, signaling a potential turning point for the altcoin. The renewed momentum has sparked optimism, especially as large-scale investors, or “whales,” are re-engaging with the network.
Cardano Notes New Highs
Cardano’s recent price action has prompted a significant increase in whale transaction volume, with a total of $11.5 billion traded by large holders in just the last five days. The last time Cardano saw this level of whale activity was over six months ago, in May. This renewed participation from large wallet holders, typically one of the most influential investor groups, suggests growing confidence in ADA’s price trajectory.
Whale involvement is a strong indicator of market sentiment, as these large players often move substantial amounts of capital. Their return signals an endorsement of Cardano’s current value and potential, potentially adding to ADA’s stability. If whales continue to participate actively, Cardano could sustain its upward momentum and strengthen its price position further.
On a technical level, Cardano’s momentum is supported by indicators such as the Relative Strength Index (RSI), which is currently in the overbought zone. Historically, an overbought RSI has often triggered short-term corrections for ADA, signaling that a temporary price dip could be on the horizon.
This overbought status raises caution as it implies that ADA may be at risk of profit-taking. Should Cardano’s price follow historical patterns, some recent gains could be reversed, leading to a short-term cooldown in its rally. Investors are likely to monitor this closely, as any correction could influence broader market sentiment toward Cardano.
ADA Price Prediction: Securing Support
Cardano’s price has climbed by 75% over the past five days, trading at $0.58 at the time of writing. If ADA aims to breach the $0.59 resistance and push toward $0.60, it will need continued macroeconomic support and a strong influx of buying interest to maintain its pace.
Given the current overbought signals, a correction could bring ADA down to $0.54. This drop would offer a stabilizing support level but also indicate the necessity of sustained momentum to enable further gains.
If Cardano rebounds from the $0.54 support, it could fuel a renewed rally. However, a breakdown below this price would invalidate bullish expectations, potentially leading ADA to revisit $0.46 as a new support level.