- ADA showed several signs indicating a possible pattern break was coming.
- The flows of large holders from the ADA show renewed interest from whales, which could indicate accumulation.
Is Cardano [ADA] on the verge of a substantial price movement? Multiple signals point to a possible bullish outcome in the coming days.
ADA has struggled to list enough volumes to recover from the latest downturn. However, that could be about to change as whale activity increases.
The cryptocurrency started October with a significant dip in flows from major holders. This applies to both inflow and outflow.
Major ADA holder activity rebounded this week, indicating whales are showing renewed interest in the cryptocurrency.
Large holder inflows peaked at $4.79 billion ADA in the past 24 hours, while large holder outflows peaked at $4.72 billion.
Source: IntoTheBlock
The data shows that large holders have made a net gain in the past 24 hours, causing some accumulation. This suggests that sentiment could be shifting in favor of the bulls despite the recent bearish price action.
Data from the chain also showed an increase in the number of long positions over the past three days. This is further confirmation that bullish sentiment has grown this week.
Source: HyblockCapital
Why an ADA Outbreak is Imminent
Rising longs and increased whale activity are not a coincidence, but are most likely related to ADA’s price pattern. The cryptocurrency is moving within a wedge pattern supported by rising support and falling resistance.
ADA has been hovering within the rising resistance line for the past two weeks and has held firm thus far. Moreover, the price is currently approaching the squeeze zone, indicating that a pattern break will occur soon.
Source: TradingView
ADA was exchanging hands at $0.34 at the time of writing. The Money Flow Indicator (MFI) indicated that liquidity has flowed into the cryptocurrency over the past seven days.
However, it was not enough to trigger a major bullish march.
Nevertheless, this observation was consistent with the net positive flows observed in large account holders’ accounts and rising long positions.
Read Cardanos [ADA] Price forecast 2024–2025
The fact that whale activity is surging at recently depressed prices suggests a notable likelihood that a bullish breakout could occur this weekend.
ADA could potentially deliver gains of over 20% if a strong bullish breakout occurs. But this is not necessarily a guarantee, and a bearish breakout could also occur if the cryptocurrency fails to build enough demand.
