Spring Surge? Whales Gather as Prices Rise
Cardano’s price has exhibited ongoing consolidation this week, yet persistent whale accumulation and its technical indicators hint at a potential rebound.
As of Saturday, Cardano (ADA), the prominent layer-1 network, was trading at $0.70, a level it has maintained for several days.
Indicators show that whales are starting to accumulate, anticipating a price rebound in the coming weeks. Data from Santiment indicates that the volume of ADA coins held by whales with between 10 million and 100 million coins has risen to 12.8 billion, an increase from 12 billion in January.
Moreover, those holding between 100 million and 1 billion coins have increased their holdings to 3.14 billion from 2.6 billion in March. This accumulation trend may continue as sentiment within the crypto market improves.
Interest from both retail investors and whales is also reflected in staking data. According to StakingRewards, investors have contributed 307 million ADA tokens, valued at $215 million, over the last 30 days.
Three primary factors are driving this accumulation. First, market participants expect Bitcoin’s (BTC) price to continue rising, with Standard Chartered predicting it could reach $200,000 in Q4. A significant increase in Bitcoin generally results in larger gains for altcoins.
Second, indications suggest that the SEC, under Paul Atkins, may approve a spot Cardano ETF, which could significantly enhance institutional demand. This demand could surge if the SEC permits these ETFs to include staking features.
Third, expectations are that Cardano’s integration with Bitcoin will strengthen its position in the decentralized finance sector, allowing Bitcoin holders to earn monthly returns.
Cardano Price Technical Analysis
The daily chart reveals that ADA’s price has stabilized at a crucial resistance level over the past few days, consolidating around the 50-day and 100-day Exponential Moving Averages (EMA).
The coin is currently situated just below the upper boundary of a falling wedge pattern. This wedge formation, characterized by two descending, converging trendlines, typically leads to a significant bullish breakout over time.
A breakout could likely drive Cardano’s price to $1.176, aligning with the neckline of the double-bottom pattern at $0.513. A double bottom is widely considered one of the strongest bullish signals in the market.