Cardano Price: Will 15-Month Accumulation Lead To New Highs?

Cardano (ADA) price saw a notable market resurgence, registering an 11% increase in market cap on a day marked by overall retractions in the cryptocurrency landscape.

This surge was part of a broader trend observed since November 2023. Where wallets holding over 1 Million ADA began a consistent phase of accumulation.

During this 15-month period, these substantial holders added 1.41 Billion ADA, equating to 2.35% of the total circulating supply.

This strategic accumulation by whales and sharks bolstered ADA’s price by 107% since the start of their buying cycle.

It signals strong confidence in the asset’s value amidst market fluctuations.

Also further analysis reflected a significant rise in the total coins held by these large-scale investors. That contrasts with the general market trends.

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This denotes a robust demand at higher accumulation levels. It could stabilize prices even as smaller investors might sell off during dips.

Conversely, if the accumulation trend reverses, or if these large holders begin to offload their positions, it could lead to a sharp decline in price.

The wallet activity by whales and sharks will be crucial for predicting ADA’s future price movements, as their investment behavior has historically influenced market dynamics profoundly.

These on-chain observations hinted at sustained growth if the accumulation continues, or possible corrections should it cease.

Why Cardano Price Could be On The Verge of a Rebound

Diving into the price action of Cardano, showed a significant breakout as its recent ascent on the chart denoted.

This move was characterized by a strong push through a major descending trendline that had previously capped prices.

As the breakout occurred, ADA’s price surged past the Fibonacci retracement level of 0.618 at approximately $0.7944, reaching towards the $0.83 mark.

The price momentarily breached the resistance level at $0.786, which aligns with the 0.786 Fibonacci line, before settling slightly below at around $0.7928.

This recent spike suggested an ongoing momentum that could potentially propel ADA to target the next resistance near $0.83.

This level represents a potential 8.28% increase from the recent consolidation in the triangle pattern.

However, if the momentum does not sustain, and ADA fails to hold above the key Fibonacci levels above the breakout level, ADA could see a pullback towards lower support levels.

The nearest support after the breakout point lies around $0.76, where prior resistance may transition to support.

Further declines could test the lower bounds near $0.75, the base before the breakout.

While the bullish outlook is predicated on sustained buying pressure and a hold above crucial levels like $0.76, the risk of retreat remains if these conditions are not met.

The immediate future of ADA’s price movement will heavily depend on its ability to maintain above these newly established supports.

Ongoing volume and trader sentiment are critical in determining the next phases of Cardano’s market position.