Cardano (ADA) has been through a roller coaster of volatility, with the price experiencing ups and downs in the past few weeks. After hitting a local high of $1.32, ADA pulled back more than 30%, falling to $0.91 before returning to a critical support level. This price action has left investors wondering if the current recovery marks the beginning of a new bullish phase or just a temporary pause before a negative impact.
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Major analyst Ali Martinez recently shared key insights on X, leveraging Santiment metrics to shed light on the whale activity driving Cardano's market movements. According to Martinez, large ADA holders started taking profits as the price went up from $1.15 to $1.33. However, the story shifted dramatically when ADA fell below $1, with whales rallying again at the $0.91, signaling renewed confidence in the token's potential.
With whale activity and market dynamics heating up, Cardano has returned to a significant price an area that could define his path in the coming weeks. Investors are now watching closely to see if this level of accumulation will encourage sustained accumulation or if further consolidation is ahead for ADA. One thing is certain – Cardano remains a signal to watch as volatility continues to shape its price action.
Data reveals the behavior of Cardano's whales
The last few weeks have been very volatile for Cardano (ADA), reflecting the unpredictable movements of the general market and the strategic plays of smart money. ADA has become a vehicle for large investors who make calculated moves as the market grows.
Major analyst Ali Martinez recently data identified from Santiment which underscores the important role that whale activity plays in shaping the ADA price action. Martinez disclosed that Cardano whales began unloading their holdings as the price went up from $1.15 to $1.33, locking in huge profits. However, as the price dropped sharply to $0.91, those same whales re-entered the market, buying an impressive 160 million ADA during the dip.
This buying spree has fueled optimism, suggesting that smart money sees Cardano as a support in the coming months. Such activity often reflects confidence in the fund's ability to bounce back and possibly better. However, it is important to consider another perspective. This rally could also be a short-term liquidity strategy designed to attract retail investors into ADA, potentially setting the stage for a wave other of profit with larger holders.
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As ADA moves closer to critical levels, its next moves will likely depend on how these dynamics unfold. Whether this is an introduction to stablecoins or a tactical move with smart money, Cardano remains a key asset to watch in the coming weeks.
Price above $1
Cardano (ADA) is trading at $1.04, marking a swift recovery after spending just a few days below the crucial $1 mark last week. This rebound shows strong buying interest around the $1 level, which has historically been a psychological and technical support area.
If ADA manages to hold its position above $1 in the coming days, the next target is around $1.20 – a price level that has previously triggered significant selling pressure. Retrieving this level would confirm bullish momentum and signal buyers are ready to challenge higher resistance zones.
For ADA bulls to sustain momentum and move the price higher, a break and consolidation above the $1.20 mark is essential. This would demonstrate the strength of the market and could pave the way for wider collection. However, failure to claim $1.20 could result in another period of consolidation or even a pullback, as sellers may step in to defend this resistance level.
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With a recent whale rally adding to bullish sentiment, ADA's ability to hold above $1 and a $1.20 target will likely define its short-term path. Traders will keep a close eye on these levels to see if Cardano can sustain its recovery and regain upward momentum.
Featured image from Dall-E, chart from TradingView
