In the last week, the value of Cardano has surged approximately 15%. This surge is mainly due to a growing number of large-scale investors, often referred to as “whales,” buying more of the cryptocurrency.
In simpler terms, the significant increase in ADA‘s value has placed it above Bitcoin (BTC) and Ethereum (ETH), both of which have been mostly stuck within a specific price range. The growing optimistic sentiment suggests that ADA will continue its upward trend.
Cardano Whales Drive Price Rally
According to Santiment’s data analysis, whale investors holding between 10 million and 100 million ADA tokens have collectively purchased approximately 60 million ADA worth over $58 million within the last seven days. At present, these significant ADA investors control a record-breaking 12.21 billion coins, which represents their highest accumulation in the past month.
When whales (large investors) start buying more of an asset, this indicates a positive outlook or optimism in the market, which is commonly known as a bullish signal. This pattern tends to persuade smaller retail investors to also invest, thereby decreasing the availability of this asset on exchanges and increasing its worth due to higher demand.
The increase in whales holding ADA, as seen on the blockchain, appears to be connected to ADA’s current underpricing. This correlation is suggested by the low Market Value to Realized Value (MVRV) ratio of ADA across various moving averages, indicating that its market value is less than what investors originally paid for it.
This measurement, used to determine if an asset is priced higher or lower than the average price at which its owners originally bought it, indicates a potential chance for purchase.
An unfavorable MVRM (Maturity-Adjusted Value Realized vs Maturity-Adjusted Value Unrealized) ratio in the case of Cardano indicates that it might be underpriced. This situation draws the attention of large ADA holders, or ‘whales’, who anticipate a future price increase.
ADA Price Prediction: Key Support Level To Watch
On the daily chart, I observe that the price of ADA is hovering just above the support established at approximately $0.94. Should large investors (whales) persist in their accumulation phase, they would fortify this support level, potentially instigating another climb beyond the $1 mark.
But should the bulls not successfully guard this vital support level, a drop in ADA’s price could occur, potentially taking it down to $0.85, thus making our current bullish forecast null and void.
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2025-01-08 13:34