Cardano (ADA) Surges 16% as Whales Accumulate $296M
1min read Cardano (ADA) has recently experienced a significant breakout from a short-term descending channel, driven by $880,000 worth of short liquidations within a 24-hour period. This event has created momentum for an upward price movement, with the cryptocurrency currently trading at $0.8, reclaiming the range formation established in February. The price successfully retested the $0.68 level in late March before recovering, and recently found support at this same level on May 8th.
Bulls are now defending the $0.8 support zone, with technical indicators suggesting continued upward movement. The 20 and 50-period moving averages indicate dominant bullish momentum, while the rising On-Balance Volume (OBV) shows steady buying pressure. The next price target for Cardano is the mid-range resistance at $0.91, according to technical analysis of the daily chart. The strong support at $0.75 continues to play an important role in Cardano’s price action, highlighted as a critical zone for maintaining bullish momentum.
On-chain data reveals interesting accumulation patterns among different holder groups. The 10-100 million ADA holder cohort has been particularly active, adding 1% of Cardano’s circulating supply over the past month. This translates to approximately $296 million worth of tokens at current prices. This whale cohort stands out as the only consistent buyer throughout the past month. The even larger 100 million to 1 billion ADA holders have also increased their positions over the past three days. Other holder groups appear to be selling their holdings during this period, with the exception of retail investors, who have shown steady buying behavior since February.
Cardano’s network metrics show mixed signals. Daily active addresses and transaction volume experienced a sharp drop on Friday, May 9th. This reduced activity continued through the weekend. While weekend slumps in daily active addresses are common for Cardano, the drop in transaction volume during weekends is less typical. Despite this recent decrease, the daily active address count remains higher than values recorded throughout most of April. Token velocity also declined alongside transaction volume over the past few days, occurring simultaneously with a price increase, suggesting reduced selling pressure and minimal profit-taking – both indicators of accumulation behavior.
With the current on-chain data showing continued whale accumulation and technical indicators pointing to sustained bullish momentum, ADA appears positioned for potential further gains if market conditions remain favorable. The recent breakout from the descending channel pattern represents a significant technical development that has altered Cardano’s short-term price trajectory. The reinforcement of the $0.75 support level as a pivot point for market dynamics provides traders and investors with potential areas to watch. Historical data often correlates breakouts with subsequent upward price movements, suggesting a shift towards more secure bullish market sentiment.
