"Whales Accumulate $200M in ADA as Cardano Drops 20%"

Cardano, the fifth-largest cryptocurrency by market capitalization, has experienced a significant price decline in recent weeks, with its value dropping by approximately 20%. Despite this downturn, large investors, often referred to as "whales," have shown strong confidence in the cryptocurrency, accumulating over 300 million ADA worth nearly $200 million.

This accumulation by whale addresses, which hold between 10 million and 100 million ADA, suggests a strong belief in a potential recovery. The massive buying activity occurred even as the price of Cardano fell, indicating that these large investors viewed the current price as an opportunity. This surge in whale activity coincides with a 20% price drop, which may signal that they are capitalizing on lower prices and expecting a price rebound.

Cardano's correlation with Bitcoin has been steadily increasing, currently standing at 0.75. This means that ADA has been moving increasingly 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, if Bitcoin's price rebounds, Cardano could follow suit, as the Bitcoin market has shown signs of stability. This interdependence could help ADA regain some of its recent losses as Bitcoin begins its recovery.

Cardano's price is currently trading at $0.66, reflecting a significant 20% drop over the past week. The ongoing downtrend, which has persisted for over a month and a half, has left ADA stuck in a bearish trend. 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.