As an analyst with over two decades of experience in the cryptocurrency market, I have seen my fair share of bull runs and bear markets. However, the current rally of Cardano (ADA) has caught my attention. With long-term holders and whales joining forces to accumulate ADA, it’s hard not to be bullish on this altcoin.
Over the last seven days, Cardano‘s value (ADA) has significantly increased by more than ten percent, peaking at $1.15 – a price level not seen since April 2022. This upward trend is driven by less selling from long-term holders and growing investment by large-scale buyers.
With growing bullish momentum, ADA could see further gains in the near term. Here’s why.
Cardano Long-Term Holders and Whales Join Forces
The significant increase of approximately 217% in Cardano’s price during November stirred up the activity of tokens that had been inactive before, as suggested by the decrease in the Average Age of Coins over a 30-day span.
This measurement calculates the typical age of all cryptocurrencies within an asset, considering the length of time they’ve been held. A decrease in this value indicates a rise in “on-chain” transactions, as older coins that were previously not in use are now being spent or moved, often for financial gain.
Over the last week, I’ve noticed a change in the trend of ADA. According to Santiment, the Mean Coin Age for ADA has been on an upward trajectory, suggesting that the network is experiencing accumulation. This seems to be due to a decrease in selling from long-term ADA holders, resulting in a 10% increase in value over the past seven days.
Furthermore, it has been observed that prominent ADA investors, often referred to as “whales”, have expanded their holdings during the specified timeframe. Data from on-chain sources indicates that addresses holding between 100 million and 1 billion ADA coins collectively purchased approximately $276 million worth of ADA over the last seven days.
When whales start buying more of an asset, it suggests they’re optimistic about its upcoming price fluctuations, which could stimulate additional interest in the market. This amassing might cause a rise in price because there is less of the asset available for trading, as whales own a greater percentage of the total supply.
ADA Price Prediction: New Highs Remain Within Reach
On a daily chart, Cardano’s Elder-Ray Index confirms the bullish bias toward the altcoin. At press time, the indicator’s value is 0.31.
This tool assesses the intensity of a market direction by examining the balance between buying and selling activity. When it’s positive, it means that buyers are more dominant than sellers, pointing to a rising or bullish trend in the market. If this pattern persists, Cardano (ADA) could build on its current growth and approach $1.30, a price level it last reached in January 2022.
Alternatively, if there’s an increase in the circulation of coins, it could lead to a drop in the price to approximately $1.09. If the bulls can’t maintain this price, the value of Cardano coin might fall below $1, trading around $0.92 instead.
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2024-12-02 11:56