- Cardano is bracing for a price rally influenced by demand from whales looking to accumulate big loads of ADA at a discount.
- Crypto analyst Ali has identified an interesting trend in the altcoin that indicates an imminent price surge.
Cardano (ADA) is at the precipitate of a price rally. On-chain data reveals renewed interest by whales in the 9th-ranked cryptocurrency. In part, this could be due to the price drop earlier this week, which welcomed investors to re-invest. Discount prices on offer right now present smart investors an opportunity to invest and make a quick profit.
At the time of press, ADA is trading at $0.54 after a 5% drop in the last 24 hours. This extends the altcoin’s weekly loss to nearly 13%.
Retail investors historically panic after a drastic price change which leads to further losses. However, it is common for large investors to take advantage of the low prices to accumulate ahead of the next breakout.
Data shared by crypto analyst Ali shows that large accounts have been consistently accumulating huge loads of ADA. Of note, large accounts hold between 100K and 10M ADA. Smelling blood in the water, these accounts have intensified their accumulation from 5.85 billion to as high as 5.77 billion. Notably, during this time ADA prices have fallen from $0.664 to the current levels of around $0.54.
“In the last two weeks, #Cardano whales bought over 14 million $ADA, worth around $8.40 million!” the analyst notes. Earlier this week, CNF reported on record volumes posted by the altcoin. Data from Coinglass shows that turnover metric has experienced an impressive 49.07% increase, soaring to a staggering $631.41 million.
— Ali (@ali_charts) January 4, 2024
The involvement of whales not only signals positive sentiments around the coin but also their buying means that there are fewer coins in circulation which can positively impact prices. In the third quarter of 2023, the analyst further noted that the recorded accumulation mirrored that of the 2018-2020 phase. He further predicted that this trend would persist until July 2024. Going by this prediction, ADA in the analyst’s view could break out in December.
Late last year, the token posted highs of $0.67, where it faced strong resistance. If the altcoin can maintain an upward trajectory backed by whales, it can easily break above $0.80 and push further above the $1 mark. Further down the road, investors are optimistic that the altcoin can revisit its all-time high of $3.09 achieved 2 years ago.
As CNF reported, the altcoin was likened to Amazon stock. Crypto analyst Gambardello compares the ADA market conditions to the early years of Amazon. During this time, Amazon focused on building the ultimate platform believing that market success would follow. The same approach can be seen in Cardano.
From his point of view, acquiring ADA now is like buying AMZN back in 2001 when it was $0.30. AMZN is trading at $144 at the time of press.
In 1999 Amazon Stock reached an all time high of $5.25! In 2001 Amazon dropped down to $0.30!📉
— Lucid (@LucidCiC) September 3, 2023
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