Cardano (ADA) Price Close to 50% Rally Soon Catalyzed by Whale Traders

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As a seasoned analyst with over two decades of experience in the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. Yet, the recent surge of Cardano (ADA) has caught my attention like never before. With its impressive 200% increase in just three weeks and a solid support level at 79 cents, ADA is undeniably one of the top contenders in this ongoing altcoin awakening.

In the current surge of altcoins following Bitcoin‘s near-reach of $100K, Cardano has risen as a strong competitor. This large-cap altcoin, valued at approximately $44 billion and averaging around $3 billion in daily trading volume, has skyrocketed over 200% in the last three weeks, trading at roughly $0.99 during the early New York session on Wednesday.

Looking at the technical perspective, Cardano’s Relative Strength Index (RSI) has climbed above 70% for the first time since an unsuccessful attempt earlier this year. This could indicate that Cardano’s price is close to bursting out of a megaphone chart pattern. If it does, its next significant goal would be approaching its all-time high.

For now, the price of ADA is attempting to surge by at least 50% to reach the upper limit of its megaphone formation, a point that aligns with a resistance level approximately $1.5. Additionally, in the past three weeks, the ADA/BTC pair has experienced a substantial recovery, and for the first time since 2021, the macro RSI has shot above the 70% mark.

If there’s an unexpected drop in the value of altcoins, the price of Cardano (ADA) is likely to encounter a strong support zone that hovers around 79 cents. Interestingly, this same price point had functioned as a significant barrier or resistance level in the past.

Major Factors Fueling Cardano (ADA) Price Up

According to Coinspeaker’s analysis, the positive perspective for Cardano is significantly strengthened by the significant advancements in its network over the past few years. As a result, the total value locked (TVL) in Cardano has hit a record high of more than $600 million and the market capitalization of its stablecoins exceeds $22 million.

Among the notable DeFi projects utilizing the Cardano platform are Liqwid’s lending system, Minswap’s decentralized exchange, and Indigo’s CDP. The Cardano network has reached a higher degree of decentralization after the implementation of the Chang hard fork, empowering all ADA holders to have more control over on-chain decision-making processes.

Nevertheless, the Cardano community continues to lean heavily towards the leadership of Charles Hoskinson, who is currently engaging with the Donald Trump administration to promote the establishment of transparent crypto regulations. Furthermore, it’s expected that the Cardano network will forge partnerships with prominent blockchains such as XRPL, Stellar (XLM), and others to broaden the Web3 ecosystem.

#Cardano whales bought over 130 million $ADA during the recent price dip!

— Ali (@ali_charts) November 27, 2024

Due to increased involvement from large-scale investors, known as whales, the Cardano network has seen substantial growth in on-chain activities. As a well-regarded proof-of-stake blockchain, approximately half of its total supply, around 23 billion tokens, is staked to maintain the ecosystem’s security.

Based on the analysis of on-chain data from Santiment, it’s been found that a total of 130 million additional Cardano (ADA) units have been acquired by large investors (whales), bringing their current holdings to approximately 3.2 billion ADA units.

The increased use of ADA among long-term investors significantly enhances its potential for future growth as an altcoin.

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2024-11-27 17:54