Cardano (ADA) has made some significant moves lately, notably starting the year strong by reclaiming the crucial $1 support zone. This resurgence has not only boosted its price to impressive weekly highs but has also piqued the interest of Cardano whales, who are now on a buying spree. Many crypto analysts are suggesting that an ADA rally may be just around the corner.
In November, ADA hit the $1 mark for the first time in over two years, riding high on the post-election crypto market rally. However, the excitement was short-lived as December brought one of the largest one-day retraces, bringing the price down below $0.8. But cardano whales weren’t deterred. They seized the opportunity during this end-of-year dip, accumulating an astonishing 160 million ADA at reduced prices. Even though some market sentiments turned bearish, indicating caution among traders, the New Year rally reignited hope for ADA fans.
Cardano’s impressive climb continued, boasting a 27% increase over the past week, significantly fueled by Bitcoin’s resurgence over the $100,000 mark. Starting the year from a range of $0.84-$0.90, ADA rapidly reclaimed its $1 mark by January 3. Since that time, it has found itself oscillating between $1.05 and $1.11, not just recovering but making noteworthy strides.
Crypto analyst Ali Martinez has reported how Cardano whales are at it again, bagging over 10 million ADA just in the last 24 hours. This activity is signaling strong interest from larger investors in the cryptocurrency. In a flurry of buying, these whales also picked up more than 40 million ADA within a mere 48 hours as the price surged past the $1 mark.
As Bitcoin maintains its place above $100,000, ADA seems to be gearing up for a breakout. Trader Sebastian pointed out that ADA is trying to surge past a short-term bullish pattern, specifically aiming to break through the $1.15 resistance level. He further mentioned that ADA is attempting to convert a critical resistance area into support on the ADA/BTC chart. If successful, Sebastian believes that such a breakout could propel ADA to the leading edge of the bull market.
Adding to the positive sentiment, crypto analyst Dan Gambardello from Crypto Capital Venture presented an optimistic outlook for ADA’s future following Grayscale reintroducing the cryptocurrency into its Digital Large Cap Fund (GDLC). Notably, Grayscale had liquidated all ADA holdings back in April, leading to criticism and a 12% drop in price. Post-announcement, Gambardello confidently stated that “the ADA wave is coming.”
Yet, there’s a twist. Cardano’s momentum encountered a brief pause as Bitcoin’s recent price downturn caused a ripple effect, dragging ADA and other cryptocurrencies along with it. Following a 4% drop in Bitcoin to the $97,000 support zone, ADA’s price also slumped by 8%, slipping from $1.11 to $1.02 before showing signs of recovery. Despite this pullback, Cardano remains resilient above key support levels, quelling fears of further losses.
As it stands, ADA is trading at $1.03, reflecting a 5.8% decrease over the last 24 hours. Nevertheless, the overall sentiment remains cautiously optimistic, with many eyes on Cardano as it charts its course forward in this dynamic market.
