Cardano Price Eyes $0.85 as Whales Scoop Up 240 Million ADA

Cardano (ADA) continues to show signs of recovery, with whales significantly accumulating the token. Recently, whale addresses holding between 100 million and 1 billion ADA have purchased over 240 million ADA, worth approximately $175 million. This surge in whale activity suggests confidence in Cardano’s next performance, and the next key price target for ADA could be $0.85.

Whale Activity Supports ADA Price Recovery

Whales have been playing a significant role in the recent price movement of Cardano. In the last one week, the number of whale addresses is on a rise, and they have been accumulating ADA by buying it at higher volumes at a cheaper price. Such a move by the large investors means they have confidence in the asset in the long-run and an expectation of a change in trend, in this case a positive one.

The 240 million ADA purchased by whales serves as a strong indicator that large investors are positioning themselves for a future price increase.

Concurrently, based on the Mean Coin Age, long-term holders have not been selling the ADA tokens therefore they do not consider it a dump asset but rather a token with a massive rally potential. This could help contain the price support for ADA at higher levels and avoid sharp declines in the near term.

Cardano Price Struggles to Break Resistance

Nevertheless, the bullish indications from whale accumulation have been met with a pushback at $0.77 in price. In the previous weeks, ADA price has not managed to trade beyond this level, therefore, it cannot be considered a full recovery. Therefore, the $0.77 area represents the key level that will determine the formation of an uptrend since crossing a price higher than this level will unlock further buy signals.

There is a lack of consistent buying pressure in Cardano’s recent price action that hasn’t allowed ADA to break past significant resistance levels. However, the support from whales and long-term holders may help ADA price to avoid this situation. At press time, Cardano price was trading at $0.7476, a 1.20% rally from the intraday support of $0.7222.

If ADA price can cross above $0.77 then the next level of significant resistance may be $0.85 in order to pump for another round of higher price action.

Will ADA Price Soar To $5? Analyst Weighs In

Crypto analyst Javon Marks suggests that in accordance with the prior cycles it is possible to see the next move of ADA price towards the first level of the 1.272 Fibonacci extension, which in this case is $5.36. This target would signify over 6.8 times increase from the current position and more than 585% increase in the price rally.

Source: X

In the shorter term, the 1.272 Fibonacci extension of the current base suggests a target of approximately $3.95. This target is in line with other past bullish runs that Cardano has exhibited where most of the movements occur after the formation of consolidation patterns. 

Moreover, according to crypto analyst LLuciano_BTC, the Cardano price is showing signs of a bullish flag breakout after a period of consolidation. If the ADA price breaks above the descending resistance with strong volume, it could trigger a significant upside move, potentially toward $1.80.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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