Cardano Gains 30% on Whale Activity and Grayscale ETF Filing

Cardano (ADA) is gaining momentum as it approaches the critical $1 price level, driven by a confluence of whale activity, growing institutional interest, and positive market sentiment. Over the past several months, the cryptocurrency has broken through key resistance levels and shown relative outperformance compared to other Layer 1 (L1) assets like Bitcoin and Solana. Analysts and traders are closely watching whether the price can maintain its upward trajectory and break past $1, a threshold that has historically been difficult to achieve[1].

After consolidating for five months, ADA recently surged past the $0.90 resistance level, marking a significant turning point in its price behavior. This breakout coincided with a sharp increase in social volume, which surpassed 20k, signaling renewed interest from the broader community. The price movement has also been supported by whale activity, with the number of transactions involving more than $100k increasing from 86 to over 1,000 in a single week. These large-scale accumulation patterns are often associated with short-term liquidity squeezes, which can drive rapid price appreciation. ADA has already seen more than 30% gains in the past week as a result[2].

Institutional interest is also on the rise, particularly with Grayscale’s recent filing for a spot ADA Exchange-Traded Fund (ETF). This move is seen as a major catalyst for ADA’s price, as it indicates growing recognition of the asset among institutional investors. Such a product could offer increased liquidity and broader market exposure, further fueling ADA’s upward movement[3].

ADA has also outperformed major cryptocurrencies on both 24-hour and monthly charts. The ADA/BTC ratio recently hit a five-month high, indicating a shift in market sentiment favoring Cardano. The cryptocurrency recorded gains of over 15% in the last 24 hours and more than 71% in the past quarter. Analyst Javon Marks has noted that ADA has the potential to reach at least $1.20 and even $2.91 in the future, a 206% increase from its current price. His forecast is based on ADA’s historical tendency to reverse downward trends and enter new bullish phases after reaching certain levels[4].

Derivatives market data also supports the bullish outlook. Open interest for ADA has surged by 24% in the past 24 hours, reaching $1.88 billion, a figure that is more than five times the growth of the largest altcoin. This increase underscores the growing confidence in ADA’s price movement and suggests that more investors are positioning themselves for further upside[5].

Social sentiment remains overwhelmingly positive, with ADA’s founder, Charles Hoskinson, expressing optimism about the recent price action. Despite some early profit-taking, characterized by a drop in whale transactions to 937, the overall sentiment remains bullish as the market enters a risk-on phase. The combination of rising open interest, strong whale accumulation, and positive social volume continues to reinforce ADA’s case for a $1 breakout[6].

While the $1 level is a major psychological and technical barrier, recent momentum suggests that ADA is gaining the necessary strength to break through. If successful, the next targets for ADA would be $1.20 and beyond. Given the current trajectory and institutional developments, many in the market believe that ADA is on the cusp of a significant price move.

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[1] [2] [3] [4] [5] [6]

Source: [1] Cardano Eyes $1 Breakout as Whale Activity and ETF Hopes Surge (https://coinmarketcap.com/community/articles/689f420780691323f3902353/)