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Cardano (ADA) has had a challenging period, with a sharp 42% correction since early December when it reached a multi-year high of $1.32. The retracement reflects broader market uncertainties and profit-taking by investors after the impressive rally. However, recent measurements of the chain indicate an intriguing shift in market dynamics: an increase in whale accumulation.
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Top analyst Ali Martinez highlighted key data showing that major investors purchased more than 20 million ADA in the last 48 hours. This significant activity contributes to the ongoing trend of large-scale whale accumulation, indicating growing confidence in Cardano’s long-term potential.
The renewed interest from major players comes as Cardano continues to expand its ecosystem with robust development initiatives and partnerships. This accumulation phase could mark a turning point for ADA, as whale activity often precedes market recovery and future price increases.
While the market remains cautious, Cardano’s underlying metrics indicate resilience despite the recent recession. Investors and analysts are now watching these developments closely to gauge whether this accumulation trend will help the ADA regain momentum and climb back to its previous highs. With interest in whales increasing, Cardano could be preparing for a remarkable recovery in the coming weeks.
Cardano whales continue to buy
Cardano’s recent price correction has not deterred long-term investors, especially whales, who seem to be seizing the opportunity to accumulate. This sharp increase in accumulation indicates that large-scale investors are positioning themselves for a possible price breakout in the near future.
Historically, significant whale activity has often preceded major market moves, and this case appears no different. The accumulation trend underlines the growing confidence among influential players in the Cardano ecosystem, even as the market has seen turbulence recently. Analysts speculate that whales may anticipate upcoming developments or improvements within the Cardano blockchain that could spark renewed interest and price growth.
This trend is in line with broader market dynamics, where smart money often takes advantage of suppressed prices to gain positions before momentum shifts. As a result, the activity of these large holders is closely monitored by market participants, who view it as a critical indicator of ADA’s potential direction.
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Although short-term fluctuations persist, the underlying data paints a bullish picture for Cardano. If whale accumulation continues, it could serve as a catalyst for the ADA to regain key resistance levels and potentially break out of the extended correction phase.
ADA with key levels
Cardano is currently trading above the $0.85 support level despite increasing selling pressure in recent sessions. This key level has acted as a critical demand zone, preventing further declines and laying a foundation for potential recovery. However, ADA remains at a crossroads as its next steps could set the tone for the price trajectory in the coming weeks.
If Cardano can convincingly recapture the psychologically important $1 mark, analysts predict a strong rally could follow. Such a move would likely pave the way for ADA to challenge its yearly high of $1.32, which was reached during its impressive run in early December. Breaking through this resistance could signal a broader market reversal and renew bullish momentum for the cryptocurrency.
However, there are still risks on the downside. If current support levels are not maintained, ADA could be exposed to a deeper retracement, potentially re-reaching lower demand zones around $0.75. This scenario would reflect increased bearish sentiment and highlight the ongoing battle between bulls and bears.
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Traders and investors are watching these levels closely as they could determine Cardano’s near-term market prospects. With whale accumulation trends and solid on-chain fundamentals providing support, ADA remains poised for significant volatility in the days ahead.
Featured image of Dall-E, chart from TradingView
