Cardano (ADA) Surges 9% as Whales Accumulate and Sentiment Turns Bullish

Cardano (ADA) has shown strong upward momentum, with its price currently trading around $0.69 after a nearly 9% rally on Tuesday. This surge reflects growing investor confidence in the cryptocurrency, which has gained approximately 14.99% over the past week.

On-chain data supports a bullish outlook for Cardano. According to Santiment’s Supply Distribution metric, whale wallets holding between 100,000 to 100 million ADA tokens have been actively accumulating during recent price dips. Between April 14 and the present, these large holders have increased their positions by hundreds of millions of tokens, indicating that they view current price levels as an attractive entry point. This accumulation trend bolsters overall investor confidence in ADA.

Market sentiment is also turning increasingly positive. The long-to-short ratio for ADA now stands at 1.06, the highest level in over a month, reflecting that more traders are betting on price increases rather than declines. Additionally, the OI-Weighted Funding Rate data shows positive numbers at 0.0096%, the highest level since February 22, indicating that traders going long are paying those with short positions, typically signaling bullish sentiment in the market.

Technical analysis of ADA’s price chart reveals promising patterns. Cardano found support around the 78.60% Fibonacci retracement level at $0.50 on April 7, subsequently rallying by 21% over the following two weeks. It’s now trading above the 61.8% Fibonacci retracement level at $0.67. The Relative Strength Index (RSI) reads 57, pointing upward above its neutral level of 50, which confirms the building bullish momentum. If ADA continues its upward trajectory and breaks above the 200-day Exponential Moving Average (EMA) at $0.71, it could extend its rally toward the weekly resistance level at $0.74.

Many analysts believe the $0.80 mark is the next key target, representing a psychologically important level that could open the door to further gains. Some have identified a falling wedge pattern on the charts, which is typically considered a bullish signal when price breaks upward.

Beyond price action, Cardano’s ecosystem is showing signs of growth that could support long-term value. The network’s integration with BitcoinOS, which happened in October last year, opens the door to Bitcoin staking capabilities. This feature will enable BTC holders to generate regular income in a more secure and decentralized approach compared to traditional centralized methods. Charles Hoskinson, the founder of Cardano, believes this integration could lead to billions of dollars in assets flowing into the network. The Bitcoin staking feature utilizes zero-knowledge cryptography, providing enhanced security for users.

The Cardano community is also actively working on improving the ecosystem. Current discussions are focusing on how treasury funds should be used to boost liquidity for native stablecoins, which could enhance the network’s DeFi capabilities. Additionally, there are growing expectations that the Securities and Exchange Commission might approve a spot ADA ETF later this year, which would likely drive institutional investment into the asset.

Despite the overwhelmingly positive indicators, some caution flags have appeared. On-chain data shows that some Cardano whales have been offloading their tokens recently, with reports indicating sales of over 180 million ADA tokens between April 13 and 18. The 365-day and 180-day Mean Dollar Invested Age metrics have plummeted in recent weeks, suggesting that previously dormant tokens are being moved. This movement could potentially signal some early investors taking profits or repositioning their holdings. However, this hasn’t deterred new buyers from entering positions, as evidenced by the overall price increase.

Various analysts have shared optimistic ADA price predictions. Crypto analyst Jad Mubaslat projects a potential 1,000% surge to $7, based on historical price cycles. Analyst Ali Martinez notes ADA breaking out of a Triangle pattern, potentially leading to a 27% price move. Some technical analysts suggest that if Cardano breaks above key resistance levels, it could see gains of up to 110%. However, a daily candlestick close below Monday’s low of $0.61 would invalidate the bullish thesis and potentially cause a decline back to support at $0.50.

The Moving Average Convergence Divergence (MACD) is turning positive, a classic ‘buy signal’ that suggests fresh bullish momentum. Additionally, ADA’s price is trading above the Ichimoku Cloud, indicating sustained uptrend support. As Cardano continues to develop its technological capabilities and attract institutional interest, many investors remain optimistic about its long-term prospects. The combination of positive technical indicators, whale accumulation, and ecosystem growth appears to be setting the stage for potential further gains in the coming weeks.