Cardano: Can ADA rise after whales grab an extra 14 mln tokens

• Whales have bought 14 million ADA in the last 14 days.
• ADA was overbought but the $0.55 region seems like a good entry area.

If things go as expected, the price of Cardano [ADA] should increase in the coming days. The reason for this prediction could be linked to the way whales have been accumulating the token for the last 14 days.

To arrive at this conclusion, AMBCrypto checked the balance of addresses of ADA holders.

Cardano whales set to restart the journey

Using Santiment’s data, we found that the 1 million to 10 million cohort had increased the number of ADA owned. On the 20th of December, the supply held by this cohort was 15.96%. But at press time, that percentage had increased to 16.36%.

Source: Santiment

Recently, ADA was affected by the widespread price collapse propelled by Bitcoin’s [BTC] dump. But before the abrupt move, the Cardano native token changed hands at $0.63. Despite the fall to $0.55, ADA’s 30-day performance remained a 29.14% hike.

However, it is important to mention that this was not the first time whales were involved in a buying spree. In November 2023, AMBCrypto reported a similar occurrence.

The accumulation during that period foreshadowed an ADA price rally. So, considering the cryptocurrency’s history, it is not out of place to expect the same outcome.

Signals say “It’s time to buy”

Can ADA repeat the same feat? This leads us to analyze the state of things from the technical side. According to the 4-hour chart, the Aroon Down (blue) had fallen to 21.34%. The Aroon Up (orange), on the other hand, had left the 01.06% it was on the 4th of January.

At press time, the Arron Up had increased to 14.29%. Though this increase was mild, it depicts a situation where the bullish momentum is slowly returning. However, the Relative Strength Index (RSI) showed the impact on the price might not be quick.

As of this writing, the RSI was 33.14, indicating how Cardano was recovering from its oversold level. For the token to rise back to $0.60, buying pressure has to increase.

Source: TradingView

However, indications from the Directional Movement Index (DMI) showed that this has not yet been the case. The +DMI (green) at press time, was 10.78. AMBCrypto also observed the -DMI (red) which was 38.16.

For ADA’s price to increase, the Average Directional Index (ADX) has to stop backing the -DMI (red). Should the +DMI rise above the -DMI, and the ADX (yellow) stays above a reading of 25, then ADA might price higher.

In addition, we checked out the Adjusted Price-DAA Divergence. At the time of writing, the metric was down to -65.50%.

Is your portfolio green? ADA Profit Calculator

For context, the Adjusted Price-DAA Divergence shows how much of a difference in the Daily Active Addresses (DAA) triggers an entry or exit.

Since the price declined more than the DAA, it means an entry opportunity may have presented itself before a potential bull market begins.

Source: Santiment