Cardano whales remain unfazed despite ADA price drop | Credit: Hameem Sarwar
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Key Takeaways
Cardano whales bought 120 million tokens since Jan. 19, valued at approximately $100 million.
The weekly chart shows that ADA’s price could follow a similar trend to 2021’s bull run.
Before that, ADA could experience an extended decline, which could drive it down to $0.83.
The price of Cardano (ADA) briefly retested the $1 mark on Monday, Jan. 20. However, as it did over the weekend, the cryptocurrency has dropped below the threshold again as of this writing.
This subsequent decline has raised concerns about ADA long-term potential — particularly in 2025, which many deem to be a bullish year for the crypto market.
However, as it stands, Cardano whales appear unperturbed by the altcoin’s short-term price action. Instead, on-chain data shows these key stakeholders accumulating in large volumes.
Besides that, the technical outlook also hints at an explosive rally for ADA that could see its price inch closer to the peak of the 2021 bull run.
On Jan. 19, the balance held by addresses who own between 10 million to 100 million ADA was 11.94 billion. Meanwhile, at the time of writing, the figure has risen to 12.06 billion.
This increase indicates that Cardano whales have accumulated approximately 120 million tokens over the last two days. With ADA’s current price at $0.98, the value of the purchased tokens exceeds $100 million.
From a historical standpoint, it appears that ADA’s price could trade much higher this year. This is according to the weekly chart which reveals that the token could be following a pattern that drove it to $3.10 on Sep. 2, 2021.
Before the breakout around February 2021, Cardano traded within $0.034 and $0.39 between early 2018 and late 2020. But as soon as the price climbed past $0.41, the extended rally began, and ADA rose nearly 700% to surpass $3 at that time.
A critical look at the ADA/USD weekly chart shows that between November 2023 and 2024, ADA’s price traded between $0.30 and $0.73. But since it has broken out of the range, it could experience consolidation at some point.
However, if past performances influence future trends and historical pattern rhymes, Cardano’s price could hit $3 before the end of this cycle.
ADA Short-Term Price Outlook: Correction Possible
But on the 4-hour timeframe, ADA risks an extended decline. This is because the Relative Strength Index (RSI) has dropped below the neutral signal line.
The RSI uses the speed and size of price changes to measure momentum. When the indicator’s reading rises, momentum is bullish. However, since it is the other way around, the momentum around ADA is bearish, and this could drag the price further down.
As it stands, ADA is likely to break below the 0.236 Fibonacci retracement level at $0.91. If this happens, then the altcoin’s value might sink to $0.83 in the short-term.
However, if ADA bounces above $0.91, this extended correction might not take place. Instead, with increasing buying pressure, Cardano price could jump to $1.10 at the 0.786 Fib level.
Looking Ahead
In the long-term if Cardano whales continue their buying pressure, the $3 prediction might come to pass.
On the flip side, if these stakeholders cash out their already-existing holdings, capitulation might happen and the bullish ADA prediction might be invalidated.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
