Recently, Cardano (ADA) has attracted the attention of large investors, also known as ‘whales’. Ali, a cryptocurrency analyst who leverages on-chain data, has observed a significant increase in large ADA transactions, typically over $100,000, over the past three months.
Ali noted that this growing trend signals increased interest from institutional officials and high-net-worth individuals in the ADA. Analysts say such whale activity often foreshadows impending price movements.
#Cardano | There has been a significant increase in transaction volume over the past three months. $ADA Transactions over $100,000 continue to hit new highs.
This surge signals growing interest in: #ADA This is usually a precursor to a price spike. pic.twitter.com/APczM2PGxM
— Ali (@ali_charts) December 4, 2023
In particular, trading can have a significant impact on the market dynamics of a cryptocurrency, but as whales accumulate assets, they often reduce circulating supply, creating potential upward pressure on prices.
Conversely, if you sell, supply may suddenly increase, causing prices to fall. For ADA, recent whale activity has been consistent with a positive price trajectory.
ADA strong trajectory and market outlook
ADA’s market performance reflects growing interest in whales. In the last 24 hours, the cryptocurrency asset has increased by 2.2% and over the past week by more than 5%.
ADA has seen some retracement from the $0.41 high it recently achieved, but is currently holding steady in the $0.40 area. This bullish trend is supported by ADA’s trading volume doubling from $250 million to over $500 million in one week.
This increase in trading activity and prices is consistent with the predictions of another analyst, Dan Gambardello. Gambardello confirmed the bullish setup for Bitcoin, Ethereum, and ADA and predicted that ADA could rise to $0.45 in the near term, with a long-term target of $0.80-$0.85.
The analyst attributes his optimistic forecast to the growth and resilience of the Cardano ecosystem, even amid recent bearish trends in the broader market.
Breakthrough Moment: Bitcoin, Cardano, and Ethereum Setting Up for a Bull Market https://t.co/cPfZzIVCxh
— Dan Gambardello (@cryptorecruitr) December 4, 2023
Recent data from DeFiLlama shows that Cardano’s ecosystem has grown significantly, with Total Value Locked (TVL) growing more than 20% in the past month, now reaching $275 million.
While this number is lower than the March 2022 peak of $300 million, the ecosystem’s approach to previous peaks reflects its resilience, as noted by Gambardello amid recent bearish market sentiment.
Cardano’s Ecosystem: A Catalyst for Future Growth?
Gambardello’s passion for Cardano goes beyond its current market performance. The analyst believes that developments in the Cardano ecosystem during the bear cycle could lead to significant growth in the future.
Gambardello predicts that Cardano will soon account for 1% of the total cryptocurrency market capitalization. These milestones will serve as a testament to the asset’s ecosystem robustness and innovation, potentially leading to a substantial upside for ADA in the next bull market.
Notably, Gambardello is not the only analyst predicting an optimistic future for ADA. In a recent post on The analyst noted that there was significant buying activity at price levels around $0.37 to $0.38, with more than 166,470 wallets acquiring ADA in this range.
#Cardano It is located in the key demand zone between $0.37 and $0.38. Here, 166,470 wallets won 4.88 billion. $ADA.
If there is minimal resistance ahead and solid support below, staying above this area can pave the way for the next one. $ADA A new annual high is achieved. Still, be careful… pic.twitter.com/GDjhspFSVr
— Ali (@ali_charts) November 27, 2023
Ali interprets this strong buying interest as an indication of a solid level of support for ADA. According to his analysis, ADA is poised for an upward trend with little resistance and is likely to surpass its yearly high of $0.4518.
Even though ADA has recently surpassed and appears to be respecting these key demand zones, the price has so far only reached a high of $0.41 and has not fully broken through $0.45.
However, given the surge in whale activity and the optimistic mood surrounding global cryptocurrency markets, reaching or surpassing the annual high remains a plausible outcome.
Featured image by Unsplash, chart by TradingView