- Cardano whales purchased 100 million ADA in the past 48 hours, coinciding with the broader crypto market rebound.
- ADA is back above $1, but the altcoin consolidates in a bullish pennant pattern on a 4-hour time frame
Cardano (ADA) is back on whale watch as they purchased 100 million ADA, significantly affecting the network and its price. In fact, the price rose from $0.998 to $1.11, reflecting increased activity from these large holders.
This buying frenzy coincided with a general market rebound, suggesting further price increases if whale acquisitions persist. Conversely, a slowdown in whale activity could see ADA retract to its lower support levels on the charts.
Source: Ali/X
The market’s trajectory depends on sustained large-scale investments and broader market trends. These are crucial in determining whether ADA will challenge higher resistances or consolidate at its current levels, highlighting the central role of whale trades in driving the market.
The future price of ADA depends on…
Following a broader market rally, Cardano price action rose above the $1.00 threshold, indicating strong buying momentum.
This move on the 4-hour chart saw ADA oscillate within a defined bullish pennant, with the price currently near $1.08. Notably, ADA recently touched a low of $0.87 before rebounding to its press time levels – a sign of strong support within this zone.
A breakout of this pennant, particularly above the $1.10 resistance level, would indicate a potential rally towards $1.50. This would correspond to the altcoin’s historical resistance points.
Source: Commercial View
To give more weight to the analysis, the Chaikin Money Flow Index (CMF) oscillated around the zero line to reflect balanced market pressure, while also supporting a stable climb. This, despite the broader correction seen in crypto markets.
Therefore, targeting the resistance at $1.50 becomes feasible. Especially if the CMF remains above the neutral threshold – a sign of sustained buying momentum.
However, ADA’s current consolidation within this pattern has also warned of possible pullbacks in the event of a failed breakout, highlighting the crucial importance of market sentiment and trading volume in determining the next significant price movement.
Number of large transactions
The number of large ADA transactions skyrocketed, reaching a high of 5,62,000 transactions in early December, especially on the 3rd. Since then, this activity has continued to decline, even as the price of ADA has increased. stabilized around $1.20.
Currently, large trading settled at a 7-day low of 4,17,000, highlighting the decrease in large trading volume.
Source: In the block
This decline in large-scale trading activity could signal weakening buying momentum or a phase of consolidation, which could limit near-term price gains.
If this trend continues, ADA may struggle to maintain higher price levels, which could result in a sideways or downward price movement. Unless significant new transaction activity emerges to push prices north again.
