- Cardano (ADA) price remains confined within a tight trading range, despite Bitcoin’s surge past $70,000.
- On-chain data reveals a 50% increase in ADA whale transactions, suggesting accumulation amid price consolidation.
- If ADA price recovers from $0.46 and surpasses the 200-day EMA, it could end the consolidation and target $0.51 and $0.6.
Cardano has been trapped within a tight trading range, despite repeated efforts by bulls to initiate a bullish rebound. While Bitcoin’s price has surged past the $70,000 mark, gaining significant momentum, the altcoin market has not exhibited any promising signs, resulting in a consolidation of ADA’s price.
However, analysts remain optimistic about a potential rebound, as on-chain data reveals a substantial increase in whale activity, which could soon be followed by a surge in buying demand for ADA.
ADA’s Whale Transaction Activity Surges by 50%
Over the past 24 hours, there has been a notable increase in bullish positions being liquidated for ADA. According to data from Coinglass, Cardano experienced a total liquidation of nearly $39K, with bulls liquidating approximately $36K in long positions.
Despite the bearish momentum currently affecting ADA’s price, savvy whales are seizing this opportunity to accumulate more ADA. Data from IntoTheBlock suggests a growing interest among whales for ADA, with the large transactions metric skyrocketing from a low of 3790 to 5820 within a single week, representing a remarkable 53% increase.
Furthermore, Santiment’s data indicates that this week, the volume of ADA transactions exceeding $100,000 has doubled compared to the typical averages observed throughout 2024. This development could potentially strengthen the buying pressure for ADA’s price in the coming days.
It is worth noting that the current consolidation in ADA’s price is not an uncommon occurrence. Historically, Cardano has often experienced extended periods of consolidation. In late 2019, ADA maintained a trading range between $0.35 and $0.45 for roughly three months before witnessing a rally in January 2020.
Moreover, ADA’s price remained between $0.25 and $0.30 for the majority of last summer before an October rally triggered significant price movements. Meanwhile, the Cardano Foundation has expanded its mainstream presence through a new partnership with Argentina, further fueling the buying demand.
This collaboration, executed with signatures from Governor Rogelio Frigerio and Cardano’s Rafael Fraga, focuses on advancing blockchain adoption in the region.
