Can Cardano Price Repeat the 2020 Cycle Amid ADA Whale Accumulation?

Crypto market has rallied Cardano (ADA) price activity entered a phase that mirrored the early stages of its 2020 cycle.

There was a sharp rise in large-volume transactions and technical indicators aligning at familiar thresholds.

Additionally, investor interest was growing in whether ADA could follow a similar growth trajectory in the current cycle.

ADA Whale Transactions Surge, Cardano Price Reacts

According to recent on-chain data, analyst Ali has shown that Cardano network executed over 137 transactions worth over $1 million within 24 hours.

Such volume movements imply that large stakeholders were more actively involved.

Consequently, the growth in the number of transactions was coupled with a sudden increase in Cardano price.

As the chart data indicated, this surge in volume correlated closely with a price increase from around $0.70 to $0.85.

Provided that ADA keeps this momentum and on-chain activity high, then it may break high resistance levels.

Historically, several accumulation periods by whales preceded directional changes in Cardano price action.

This action can point to a revived institutional interest or extended period holder interest in Cardano as bullish movement gains strength.

Risk Index Matches Previous Bull Cycle Conditions

Data from Crypto Capital Venture showed that Cardano’s long-term risk index was at 43, a value last observed on October 17, 2020.

At that point, ADA was priced at approximately $0.10 and entered a prolonged rally that eventually took the token well above the $2.00 mark.

Dan Gambardello, founder of Crypto Capital Venture, noted this risk level similarity in his post, pointing out that market conditions are again aligning at a critical threshold.

The historical correlation between risk level 43 and strong performance over the following months may provide technical context to the recent price movements and whale transaction behavior.

Cardano Price Technical Setup Resembles 2020

As of writing, Cardano price was trading at about $0.83. This was equivalent to eight times its value the last time there was risk at 43.

Besides, the current market conditions differ in the macroeconomic context. The recurrence of this risk level raised the possibility that ADA could be entering a new accumulation zone similar to that seen in the last bull cycle.

The price movement over the past week has maintained a steady upward trend. Meanwhile, recent analysis recorded a rising ADA uptake, facilitated by the introduction of the Cardano Card.

This came along with increased technical power, such as a breakout of a falling channel and positive RSI divergence.

Subsequently, this reinforced the view that Cardano price may be entering a strong upward phase toward higher targets.

Historical Trends Support a Continuation Scenario

More so, the same risk indicator developed by Crypto Capital Venture indicated that Cardano price did well in the past when this risk reading was achieved.

Data indicated that ADA price rose by 93% in the next cycle, once ADA had hit the risk mark at 43 over the preceding ones.

Moreover, this indicator provided a quantitative benchmark for assessing the long-term market performance.

Coupled by continued whale accumulation, it set up a framework that matched previous periods of Cardano price surges.