Can Cardano Maintain Its Momentum? Whales Purchase 19.5 Billion ADA in 24 Hours

Can Cardano Maintain Its Momentum? Whales Purchase 19.5 Billion ADA in 24 Hours

Cardano’s (ADA) price has experienced a notable uptick recently, gaining 3.8% in the past 24 hours and currently trading at $0.3482. While part of this recovery can be attributed to the broader market rally following the Federal Reserve’s 50 basis point rate cut on September 18, there’s another driving force behind ADA’s surge: whale activity.

According to data from IntoTheBlock, whale transactions involving Cardano spiked by over 10% in the past day. In total, 19.5 billion ADA tokens (worth approximately $6.48 billion) were moved by these large investors, typically defined as those holding $100,000 or more in assets. This increase in whale activity signals renewed optimism and could pave the way for further upward momentum in ADA’s price.

Tokenizing Gold on Cardano: A New Milestone

Adding to the positive sentiment, Cardano is about to enter the gold tokenization space. This initiative stems from a collaboration between EMURGO, one of Cardano’s founding entities, and Kinka Gold (XNK), a subsidiary of a Japanese financial services firm.

As the race for tokenizing real-world assets (RWA) heats up, Cardano is positioning itself as a key player in this growing sector, which is expected to become a $16 trillion industry by 2030, accounting for 10% of global GDP. This advancement, coupled with EMURGO’s recent partnership with Zilliqa to boost liquidity, is likely to enhance ADA’s value as adoption rises.

ADA Price Forecast: Could Cardano Reach $0.50?

Despite being in a downtrend since mid-July 2024, Cardano’s price now shows signs of a potential reversal, forming a double-bottom pattern. This technical formation typically signals a bullish shift, but key levels must be closely monitored.

• Support at $0.315: ADA recently bounced off this level twice, demonstrating strong buying pressure and marking a potential accumulation zone.
• Resistance at $0.360: This level acts as the neckline of the double-bottom pattern. A break above $0.360 would confirm the bullish reversal.
• Target at $0.3938: Should the breakout occur, the next resistance point stands around $0.3938, with the potential to push ADA closer to $0.400.

However, a drop below the $0.315 support would invalidate this bullish outlook, signaling a potential move lower. For now, the price remains on the verge of confirming a reversal, and traders will be watching these critical levels for further guidance.