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Cardano Price to Pump as Whale Holdings Increase to Control More Than 6% of ADA Supply

Last Updated May 21, 2024 9:28 PM
Nikola Lazic
Last Updated May 21, 2024 9:28 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Whales now hold 6.71% of Cardano’s supply.
  • A recent breakout suggests potential new bull phase.
  • ADA will need to stay above $0.40 to confirm the uptrend.

Cardano (ADA) has recently experienced a significant increase  in whale activity. Major holders added 11% more ADA to their portfolios over the past month. These whales now control 6.71% of the total ADA supply, signaling a strong bullish sentiment that could indicate an upcoming price rally.

Meanwhile, the price of ADA rose by 14% from its recent low of $0.40 on May 15 to a high of $0.48 on May 18. It is now 5% lower than it recent high. However, considering it made a breakout from its descending resistance, ADA could be ready for its next bull run. 

Cardano (ADA) Price Analysis 

Cardano has been in a significant downtrend since reaching a high of $0.80 on March 14. On April 13, it briefly dipped to $0.40 before rebounding above $0.44. It then climbed to $0.53 by April 23, hitting resistance at a descending trendline that started at the March peak.

Cardano daily chart
ADAUSD | Credit: Nikola Lazic/Tradingview

After encountering resistance, the price fell back to test the $0.42 level for support and has since made a modest recovery.

ADA is testing the 0.5 Fibonacci retracement level. With the RSI on the daily chart just above oversold territory, a period of consolidation might occur before a potential rise. However, the overall structure suggests Cardano’s downtrend could continue if selling pressure increases and the price falls below $0.40.

This is why it needs to stay above $0.40 to confirm its breakout momentum, preferably making a higher low. If this happens, there would be an early sign of a starting uptrend, but a stronger confirmation would come if the ADA got past $0.60. 

In that case, Cardano’s price would form its first higher low and a higher high, hinting at the possibility of it headed to $1 for its next target. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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