tl;dr
Cardano (ADA) has seen a 20% price drop recently, but whale addresses have accumulated over 300 million ADA, signaling confidence in a potential recovery. The increasing correlation between Cardano and Bitcoin (BTC) suggests that ADA's price could mirror Bitcoin's movements. Despite the ongoing down...
Cardano (ADA) has experienced a significant decline in recent weeks, with the price dropping by 20%. Despite this downturn, whale addresses have shown strong accumulation, adding over 300 million ADA worth nearly $200 million. This behavior suggests confidence in a potential recovery as broader market cues shift.
Over the past week, whale addresses holding between 10 million and 100 million ADA have added over 300 million ADA in the past week worth nearly $200 million. The massive accumulation occurred even as the price of Cardano fell, signaling that these large investors viewed the current price as an opportunity. This surge in whale activity coincides with a 20% price drop, which may indicate that they are capitalizing on lower prices, expecting a price rebound. The buying activity from these whales reflects strong conviction in the future recovery of Cardano.
Cardano’s correlation with Bitcoin (BTC) has been steadily increasing. Currently, the correlation stands at 0.75, meaning ADA has been increasingly moving in tandem with Bitcoin. As Bitcoin faces some downward pressure in the short term, Cardano is expected to mirror its movements, potentially pushing the price lower. However, the increasing correlation also suggests that if Bitcoin’s price rebounds, Cardano could follow suit.
Cardano’s price is currently trading at $0.66, reflecting a significant 20% drop over the past week. However, if the whales’ accumulation continues to fuel confidence, ADA could reverse this pattern. ADA has managed to hold above the critical support level at $0.62. If the whales continue their support and the broader market shifts in ADA’s favor, the altcoin could break through the resistance at $0.70. If this level flips into support, it may signal the end of the downtrend and a possible rally to higher levels.
Alternatively, if Cardano fails to breach the $0.70 resistance level, the price could drop back to $0.62 or below. Losing the $0.62 support could send ADA even lower, potentially falling below $0.60 and invalidating the bullish outlook.