Cardano (ADA) has been in a severe downtrend lately, trading around $0.35 (per CoinGecko’s data), down 45% over the past three months.
However, key factors, such as the recent accumulation by large investors, suggest it might be time for a short-term rebound.
According to data from Santiment, Cardano’s smart money (wallets holding between 100,000 and 100,000,000 ADA each) has purchased more than 454 million ADA in the past two months alone. The USD equivalent of the stash is approximately $160 million (at current rates).
At the same time, shrimps (addresses with 100 coins or less) have been on a selling spree lately, dumping 22,000 ADA in the last three weeks.
This trend is interesting and could be interpreted as bullish for the price of Cardano’s native token. After all, whales are known as experienced industry participants who accumulate tokens in anticipation of a major event or news that could benefit valuation. Furthermore, their buying reduces the number of coins available on the open market, which could be followed by a rally if demand remains constant or rises.
Meanwhile, small investors tend to sell during fear and price declines. When they cash out, the market gets rid of weak hands that were likely to panic sooner or later. In the aftermath, the process can create a more stable holder base and strengthen the entire ecosystem.
X user Surya believes ADA is at a decisive spot, claiming the price “is still compressing inside the falling wedge and has pulled back into the $0.34-$0.35 support.”
He sees this development as “constructive” as long as the base holds and could lead to an uptrend to as high as $0.44. “Macro-driven events can invalidate technical setups, so manage risk accordingly,” the analyst warned.
Rose Premium Signals chipped in, too, arguing that ADA’s price has consolidated at a historical demand area with clear accumulation behavior. The analyst thinks the asset could head north in the near future, setting $0.63, $0.93, and $1.32 as the next targets.
Sssebi was even more optimistic, reminding how ADA briefly exploded above $1 after US President Donald Trump initially included the asset in his crypto strategic reserve plans.
“The same thing will happen once the markets start the reversal, and it could be multiple weeks in a row. ADA can get to $3 faster than you think,” they added.
The post 450,000,000 ADA in 2 Months: Is Cardano’s Price on the Verge of a Rally? appeared first on CryptoPotato.
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