Cardano Whales Accumulate 120 Million ADA Tokens in Two Weeks

Cardano whales have absorbed 120 million ADA tokens over the past two weeks, according to data from Santiment. This significant accumulation by large holders, who manage wallets containing between 1 million and 10 million ADA, has injected roughly $71 million into the market. This buying activity is often seen as a bullish indicator, as it suggests that major investors are confident in the long-term prospects of the cryptocurrency.

This accumulation trend is further supported by recent spot market movements. Investors have withdrawn $8.17 million worth of ADA from centralized exchanges over the past week, transferring these tokens into private wallets for long-term holding. This shift in market dynamics indicates a growing sentiment among investors to hold onto their ADA tokens rather than sell them, which could potentially drive up the price in the coming weeks.

Technical analysis of ADA's price movements reveals a symmetrical triangle pattern, which is typically associated with high-volatility moves. At the time of reporting, ADA was trading at $0.5975, just below the upper bound of the triangle and the next major resistance level at $0.6566. The Parabolic SAR, a trend-following indicator, has also shown bullish signals, with dotted lines forming beneath the price, suggesting potential upward movement.

However, the breakout remains unconfirmed until ADA decisively closes above the pattern’s top line. An analysis of the Bollinger Bands shows that ADA is trading near the upper band at $0.5965, which often acts as short-term resistance. Historically, ADA's contact with the upper band has led to two possible scenarios: either the price breaks above the upper band, which could initially seem bullish but may eventually lead to a correction, or the price rejects the upper band and moves toward the lower band, which would then act as support for a broader upward move.

According to AMBCrypto’s analysis, if the accumulation trend continues, ADA is likely to rally. The combination of large holder accumulation, spot market outflows, and bullish technical indicators suggests that ADA could be poised for a significant price increase. However, the actual breakout and sustained rally will depend on ADA's ability to close above the $0.6566 resistance level, confirming a bullish breakout amidst resistance pressure.