Will Cardano Price Recover Above $1 as Whales Buy 210M ADA?
Key Insights:
- Whales accumulated over 210 million in Cardano tokens, while market-wide bullish sentiment wanes.
- Whales remained bullish on ADA price rally after a golden cross was formed in the weekly and daily timeframe.
- ADA price could rally towards $6 as the crypto market sentiment improves.
Cardano bulls lost upside momentum for a new all-time high (ATH) after market-wide profit booking tanked ADA price below $1.
Meanwhile, whales continued to accumulate at dips due to factors including Grayscale turning bullish on the asset, with high odds of spot Cardano ETF approval, and a bullish pattern formation for the first time since 2021.
Can Cardano price recover above $1 to continue its parabolic rally and hit an ATH high of $6?
Whales Accumulate 210 Million Cardano Tokens
Whales remained upbeat on a parabolic rally in Cardano price as they continued accumulating millions of tokens in recent weeks. The accumulation showed strong confidence among whales.
In an X post on August 22, analyst Ali Martinez revealed that whales scooped 150 million ADA over the last 2 weeks. Among them, 100 million Cardano were accumulated in the last 24 hours.
Moreover, Whale Alert reported more than 59 million ADA transferred from crypto exchange Bitstamp to an unknown wallet. The transaction was worth $50.24 million.
The massive whale accumulations amid declining sentiment in the crypto market suggest whales are buying ADA at dips for long-term gains.
Firstly, Cardano formed a “golden cross” chart pattern in the weekly charts for the first time since 2021. This formed after the 50-week moving average crossed above the 200-week moving average.
Since the pattern occurrence in June, ADA price rallied more than 80%. Last week, Cardano price jumped over 20% on institutional demand.
Moreover, the “golden pattern” formation in the daily timeframe caused ADA price to skyrocket by 13%.
Secondly, Grayscale turned bullish on Cardano as the firm raised ADA’s weightage in its Smart Contract Platform Fund’s portfolio.
High odds of a Cardano ETF approval by the U.S. SEC. Also, Grayscale registered a trust for spot Cardano ETF in Delaware, highlighting investors’ demand amid bullish prospects of ADA price rally above $1.
Thirdly, Cardano has surpassed 113 million transactions on mainnet, according to Cardano analytics platform TapTools on August 22.
It added that Cardano is silently becoming the world’s most robust interoperable blockchain.
As the crypto market rallied, Cardano price gained over 8% and was trading at $0.92 at the time of writing. The price has surged more than 30% in a week.
The 24-hour low and high were $0.833 and $0.93, respectively. Moreover, the trading volume saw a up by 85% in the last 24 hours.
CoinGlass data earlier today, indicated huge selloffs in the derivatives market. ADA futures OI on Binance, OKX and Bybit had slipped almost 4%, 2% and 3.50%, respectively.
This signaled a bearish sentiment among derivatives traders. However, the price remained above the 50-SMA, 100-SMA, and 200-SMA. Whereas the Relative Strength Index (RSI) dropped to 49.88, signaling potential for further downside.
It tracks, as at the time of writing, the current data reflected a huge upside as data at the time of writing showed the total ADA futures open interest rose 10.9% to $1.74 billion in the last 24 hours.
According to analysts, Cardano is mirroring its last cycle, which saw a massive rally. ADA price could hit $6 in case the historical pattern repeats.
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