Cardano: Whales bet 80M ADA to reclaim $1.2 level -Will it work?

Cardano whales purchased 80 million ADA tokens
ADA declined by 8.51% over the past week as bearish sentiment persists.

As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and trends. The recent developments in Cardano (ADA) have caught my attention, as whales have been aggressively buying 80 million ADA tokens amidst a bearish market sentiment.

After reaching a peak of $1.327, the price trend for Cardano [ADA] has found it challenging to sustain growth. Currently, it’s seen a decline and touched a low of $0.911.

This decrease in price has presented a purchasing chance for significant investors. Consequently, these major investors (often referred to as “whales”) are now taking advantage of this by purchasing during the market downturn, as suggested by well-known crypto analyst Ali Martinez.

Cardano whales buy 80 million tokens

According to Martinez’s examination, large investors (Cardano whales) have been on a buying frenzy lately. In fact, they’ve purchased approximately 80 million ADA tokens within the last two days.

Whales accumulating ADA shows their optimistic view of the market’s future value.

Over a span of two days, with an increasing number of whales, Cardano’s value climbed from $0.93 to $1.182 before dipping slightly to $1.09.

Based on recent price movements, it appears that although large investors (whales) are amassing more assets, the broader market continues to lean towards a bearish trend, with bears maintaining their control for now.

What ADA charts say?

In simpler terms, although the large-scale purchases by ‘whales’ can lead to a rise in demand and price increase, currently, the influence of ‘bears’ (those who believe in selling ADA) is stronger than the ‘bulls’ (those who believe in buying).

Currently, ADA is being traded at $1.09. This represents a 6.42% decrease in its value over the course of a day, and a more significant 8.51% fall when compared to its price a week ago.

Consequently, it appears that sellers and pessimistic attitudes are currently holding sway over the market.

The pessimism among traders was clear as many of them were choosing to sell rather than buy, which accounted for a significant majority (52.1%) in the Long/Short Ratio. In other words, it seems that a large number of investors are expecting prices to continue falling.

Furthermore, this pessimism might stem from the belief that the current surge could have caused Cardano (ADA) to be overpriced in the eyes of the market.

During the previous week, it became clear that the asset was overvalued due to the persistently negative Price DAA Divergence.

If DAA divergence persists as negative over an extended timeframe, it implies that the current price surge might be more of a speculative trend driven by buyers, rather than being underpinned by robust network activities reflecting solid fundamentals.

This occurrence is further backed up by an increasing NVT (Network Value to Transactions) ratio. Initially at 10.85, this ratio has surged to 70.94. Typically, a surge in the NVT ratio indicates that either the market capitalization or price is escalating quicker than transaction volume. This might hint that ADA could be presently overvalued, and the price hike may not be substantiated by a corresponding rise in network activity.

Read Cardano’s [ADA] Price Prediction 2023-24

Consequently, while an increase in whale presence typically boosts prices, the bearish sentiment among ADA holders persists. Given a possible overvaluation indication, it appears that ADA is poised for additional market adjustments to align with its true worth.

If the current trend persists, ADA might drop down to about $0.93. However, should buyers regain control of the market, there’s a possibility that ADA could once again surpass the $1.2 resistance point.

2024-12-13 15:03

Cardano whales buy 80 million tokens

What ADA charts say?

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