Crypto whales often make the biggest waves, and Cardano's recent price surge is no exception. Over the past week, Cardano (ADA) has seen a remarkable 15% increase, leaving leading cryptocurrencies like Bitcoin and Ethereum in its wake. The driving force? A massive $58 million ADA purchase by the big fish of the crypto sea.
Whale of a Time for Cardano
According to Santiment data, whales holding between 10 million and 100 million ADA have been on a buying spree, collectively snapping up 60 million tokens. This brings their total holdings to a whopping 12.21 billion ADA, the highest level in 30 days. When whales start hoarding, it's usually a bullish sign, sparking confidence among retail investors and reducing the available supply on exchanges.
The current undervaluation of ADA, indicated by its negative Market Value to Realized Value (MVRV) ratio, has made it an attractive buy. This metric suggests that ADA is undervalued relative to its holders' average cost, creating a prime buying opportunity for those with deep pockets.
Riding the ADA Wave
As ADA trades just above the 0.94 support level, all eyes are on the fundamental 1 resistance. If the whales keep up their buying spree, we might see ADA breach this threshold, setting the stage for further gains. However, if the support falters, a dip to $0.85 could be on the horizon, threatening the bullish momentum.
Despite the broader market's sideways shuffle, Cardano's resilience is turning heads. Institutional interest is on the rise, with Grayscale reintroducing ADA to its Digital Large Cap Fund, signaling confidence in its long-term potential. Retail traders are also jumping on the ADA bandwagon, with increased trading activity and positive sentiment on major exchanges like Binance.
Whales bought 10 million #Cardano $ADA over the last 24 hours! pic.twitter.com/k7s2l00E1R
— Ali (@ali_charts) January 7, 2025
The Road Ahead
Cardano's recent rally showcases its strength, even as other major cryptocurrencies tread water. The combination of whale activity and institutional backing is laying a solid foundation for ADA's growth. But as always in the crypto world, investors should keep a keen eye on key support and resistance levels, ready to ride the waves or weather the storms.
With the whales leading the charge, Cardano is making a splash, and only time will tell if this momentum will carry it to new heights.
Richard Adrian
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