Cardano Price Rises 7% On Increasing Whale Transactions

Cardano price is trading in the red at $0.38 after rising 7% over the past 24 hours. ADA is trading at a critical level as bears focus on undoing yesterday’s gains. Cardano’s 24-hour trading is up 55% on the day to $512 million with a live market cap of $13.26 billion according to data from CoinMarketCap. Bulls were required to hold the price above the 200-day SMA to secure the recovery. 

Growth In Cardano Whale Activity To Fuels ADA’s Uptrend

Addresses holding between 1 million to 10 million ADA have been actively transacting the Layer 1 token over the last two weeks. according to data from Santiment, an on-chain blockchain analytics firm, average daily transactions by Cardano whales were about 1,700 in the first half of the month. These transactions amount to around $100,000 or more, five times greater than those recorded in January.

Cardano Whale Transactions

Noteworthy, ADA whale and shark accumulation has been rising following the FTX fallout. According to the report, holders with about 10k to 10 million ADA tokens now have about 659.53 million ADA in total. This is approximately $253 million at current prices. 

This surge in whale activity has prompted the assumption that a potential rally in the Cardano ADA price could be on the horizon.

Cardano Price Needs To Overcome Resistance At $0.3867

ADA rallied 73% after rising from the $0.2395 swing low to a high of $0.4142. This uptick appeared to have been rejected by overhead pressure from the 200-day Simple Moving Average (SMA) which has underpinned Cardano since the end of January. An attempt to breach this barrier on February 3 was unsuccessful as the ensuing selling pressure took the token tumbling 15% to seek solace from the $0.35 psychological level.

As such, the Cardano bulls were required to reclaim the 200-day SMA currently sitting at $0.3867 to sustain the uptrend. If they succeed, the only other barriers they need to overcome are at the $0.4142 local high and the equal highs at $0.4401 to confirm an upward breakout.

If this happens, it would open the way for the ADA price to rise to the $0.5244 range high. Such a move would bring the total gains to 37% from the current price. 

ADA/USD Daily Chart

Several technical indicators supported the positive narrative for Cardano. First, the altcoin traded above key support areas. These included the $0.35 psychological level, the 50-day SMA at $0.3422, the 100-day SMA at $0.3243 and the $0.30 major support level. In addition, the bullish cross that took place on Feb 8 when the 50-day SMA crossed above the 100-day SMA was still intact, adding credence to ADA’s upside.

Moreover, the SuperTrend indicator was still bullish after turning green and moving below the price on January 6.  This shows that the market sentiment is still bull and favors the upside. As long as this chart overlay indicator continues to close below the price, Cardano will continue its uptrend. 

Finally, the Relative Strength Index (RSI) was moving upward in the positive region. The price strength at 54 suggested that there were more buyers than sellers in the market who were determined to increase their profits.

On the downside, failure to hold above the 200-day SMA would signal the inability of the buyers to sustain higher levels. The Cardano price may then retreat to $0.35 or toward the moving averages below it. In extreme cases, ADA may drop to the $0.30 psychological level, where it could take a breather for some time before making a comeback. 

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Before buying ADA, market players may first have to wait for a decisive close above the 200-day SMA. Investors may also consider diversifying their portfolios by buying some of the best crypto presales in the market. One of these is the FGHT token, the native coin for the Fight Out ecosystem.

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