Cardano Whales Accumulate 120 Million ADA in Two Weeks, What’s Next?

Highlights
- Large Cardano holders increased their holdings from 5.57 billion ADA to 5.69 billion ADA.
- MVRV ratio suggests a buying opportunity, reflecting a potential bullish trend for ADA.
- Technical indicators show oversold conditions, hinting at a possible price reversal for ADA.
Cardano, a layer 1 altcoin, has experienced a market correction recently. Despite the dip in price, underlying on-chain data and technical analyses suggest a promising outlook for the ADA token.
Cardano Whales Continue to Accumulate
In a notable development in cryptocurrency, wallets holding between 0.1 million to 10 million ADA tokens have collectively increased their holdings. As of July 17, these wallets held approximately 5.57 billion ADA; by August 1, the figure had risen to 5.69 billion.
This increase reflects a growing confidence among significant holders, indicating a potential bullish sentiment in the Cardano market.
The Market Value to Realized Value (MVRV) ratio, a key metric used to gauge holders’ profit or loss over 365 days, has highlighted a critical buy zone for ADA. The data shows that when the MVRV ratio falls between -20% and -28%, it often signals a buying opportunity.
Notably, on July 6, ADA’s price action bounced off this crucial level, suggesting that investors took advantage of the lower prices to increase their positions. Currently, the MVRV ratio stands at -15%, showing a recovery as it moves closer to the zero line, indicating diminishing losses among holders and a potential return to a neutral or profitable state.
This trend of accumulation by large holders and the movement in the MVRV ratio could suggest a positive shift in market dynamics for ADA. This shift is significant as it could precede a broader market recovery, placing ADA in a strong position for future growth.
Can ADA Rebound Above $0.4 Soon?
Over the past 24-hour period, the ADA price has significantly declined, dropping by 6% to a current value of $0.3794. The cryptocurrency sharply decreased from a high of $0.4048 within this time frame. This decline reflects the broader market reaction, where investors react to ongoing market conditions.
The Layer 1 crypto shows a recent downtrend with a possible reversal scenario. Cardano is trading near the low-value area, indicating potential bearish pressure. If bears continue to exert influence, the price might dip below $0.3919, leading to a possible further decline.
The 4-hour technical indicators for ADA suggest a bearish trend. The Relative Strength Index(RSI) is at 30.45, indicating oversold conditions. This suggests that the selling pressure on ADA may be subsiding, potentially leading to a reversal if buyers step in.
The Moving Average Convergence Divergence (MACD) shows a negative trend, with the MACD line at -0.0019 below the signal line at -0.0049.
However, the chart also indicates a possible upward movement if ADA can break above the $0.3919 level. This recovery could lead to a significant 20% increase, targeting the value area high of $0.4714. The point of control at $0.4584 is a crucial resistance level that ADA must surpass to maintain bullish momentum.
Frequently Asked Questions (FAQs)
1. Why are Cardano whales accumulating ADA?
2. What does the MVRV ratio indicate for ADA?
3. What are the technical indicators suggesting for ADA's price movement?
- Will Bitcoin Reverse to $115K Max Pain Price amid Crypto Options Expiry Today?
- Cardano Gets 100 Million User Exposure With Brave Integration, Whales Scoop 70M ADA
- Japanese Gaming Firm Gumi to Boost Treasury With BTC, XRP After $38M Raise
- BNB Leads Crypto Market Rally With Fresh All-Time High, Expert Sees $5000 Upside
- Billionaire Ray Dalio Calls Bitcoin “Alternative Money” as BTC Profit-Taking Tops $3.7B Amid $120K Rally
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns