Whales Return to Cardano: Is a Trend Reversal on the Horizon?
The price of Cardano (ADA) has been steadily rising, rising just 2.2% in the last week. However, this sideways motion may not last for very long. Although on-chain data indicates that whales are once again active, general market conditions imply that the network may be getting ready for a change in course. Whether this gradual development becomes a complete reversal or fades like earlier attempts may be determined over the course of the next few days.
Cardano Whales Quietly Accumulate $32.5M in ADA
Cardano whales with holdings ranging from 10 million to 100 million ADA have been subtly growing their holdings over the last two days. From 13.16 billion to 13.21 billion ADA, their aggregate hoard increased by around 50 million ADA, or nearly $32.5 million at today’s values. Although it is not yet aggressive, the rate of accumulation is still constant. This buying trend must pick up speed in the upcoming sessions in order to validate conviction.
Additionally, the Spent Coins Age Band, which measures the amount of ADA that shifts across all wallet age groups, has decreased by 36%, from 179.16 million ADA on October 11 to 114.71 million ADA on October 25. Because of this decline, fewer coins are being exchanged, which is a precursor to rising dormancy. The deep holder inactivity that typically signals the beginning of powerful rallies hasn’t been reached yet, though.
ADA Price Action Hints at Major Reversal
The price of ADA is displaying a possible inverse head-and-shoulders pattern on the daily chart, which is characterized by a sloping neckline and is frequently observed prior to bullish reversals. Although the neckline’s downward slope indicates that sellers are still active, ADA’s tenacity close to this level is positive. At the moment, the coin is trading close to $0.65, just below the $0.66 Fibonacci retracement level of 0.236. Prices may move toward $0.79, the pattern’s anticipated target, if a clean daily close above $0.66 confirms a breakout. The $0.83 and $0.89 marks are extended upward zones.
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