Key Insights
- Whales have accumulated more than 330 million ADA in just two weeks.
- Cardano price is holding support around $0.84 to $0.85 as of writing.
- Institutional interest, including a possible Grayscale Cardano ETF, has been a significant source of optimism.
Cardano price has been a significant source of market attraction, especially as the whales continue to make aggressive moves. Recent updates from crypto analysts on X show that investors appear to be buying millions of tokens in mere weeks.
This indicates that this cohort of investors is gearing up for something huge. Here are a few things to note.
Whale Buying Signals Confidence in Cardano Price
According to crypto analyst Ali Martinez, large investors have accumulated around 150 million ADA in just two weeks. Moreover, another 180 million ADAs were bought over two days ago.
This means that whales have scooped up over 330 million ADA tokens in such a short period.
When writing, the Cardano price was trading near $0.91. It is just above some of its most essential supports. In short, the heavy buying pressure indicates that whales are setting up for a rebound. They are likely eyeing a push toward $1 and even higher.
Whales are some of the most critical market movers and can also influence market sentiment. When they make large purchases, it often shows that they are confident in the long-term outlook of the asset.
In Cardano’s case, the whales bought aggressively when the token was still under pressure from the general market. Over the past week, ADA dropped by more than 11%. It has underperformed both Bitcoin and Ethereum. Despite that weakness, whales doubled down.
Their actions, therefore, indicate that they are taking advantage of dips rather than reacting to short-term declines. Analysts are now eyeing a support zone between $0.84 and $0.85.
If Cardano price holds this range, bulls may push for a breakout of $0.90 and $1. On the other hand, failure to defend support could send the token lower to $0.74 or even $0.70.
Institutional Interest in Cardano Grows
More than whale activity, institutional investors are also paying attention to Cardano. Earlier this month, Grayscale registered a Cardano Trust ETF in Delaware.
While this product is not yet active, this step shows that asset managers’ interest in ADA is rising. Institutional holdings of Cardano are now more than $900 million.
Large firms are especially interested in Cardano’s liquidity and its mature ecosystem. The project has steady transaction volumes. Also, ADA meets the requirements that institutions look for when diversifying portfolios.
Recent Cardano Price Action and Technical Outlook
Cardano price has been volatile over the past few days. Around 22 August, the asset touched a low of $0.82. Soon after, it rose by over 9% within hours to reach $0.93. This quick rebound boosted optimism among traders, who now expect the cryptocurrency to register a stronger rally.
However, technical analysts are warning investors to be careful. Alpha Crypto Signal, for example, noted that ADA recently completed a bearish AB=CD pattern around $0.95.
This could trigger downside in the near-term. The rejection at that level shows that buyers may be struggling to push past resistance. Still, if Cardano price can be reclaimed at $0.90 and held as support, the bearish case would weaken.
A rally above this level could pave the way toward $1.06. This aligns with the Fibonacci retracement level identified by some traders.
What to Watch Next
The market is now seeing whether ADA can hold above $0.84. If it does, speed could build toward the $1 level. This said, a breakout beyond that could bring $1.06 into play.
Conversely, a failure to maintain support could drag the token back toward $0.74. It will test the patience of long-term holders.
Either way, the Cardano price outlook is currently more bullish than bearish. Investors are on the lookout for what comes next.
