Cardano Whales Accumulate 80M ADA: Will It Reclaim $1.2?

Cardano (ADA) recently hit a high of $1.327 but failed to maintain upward momentum. As of now, the price has dropped to $0.911, creating a buying opportunity for large holders. According to popular crypto analyst Ali Martinez, whales have seized this chance to accumulate more ADA.

Whales Accumulate Over 80M ADA

Martinez reported that whales bought over 80 million ADA tokens within 48 hours. This buying activity lifted ADA’s price from $0.93 to $1.182 before it retraced to $1.09. Despite the whale-induced buying pressure, the broader market remains bearish.

Even with whale support, ADA’s price faced resistance. At the time of writing, it traded at $1.09, reflecting a 6.42% daily decline and an 8.51% drop on the weekly chart. Market sentiment leaned bearish, with sellers dominating.

The Long/Short Ratio shows that 52.1% of traders held short positions, indicating widespread expectations of further price declines. This highlights growing pessimism among market participants.

Overvaluation Signals Weigh on ADA’s Price

Traders may view ADA as overvalued, which adds to the bearish pressure. The Price DAA Divergence turned negative and stayed so for a week, signaling that price increases outpaced network activity. Such a divergence suggests speculative buying rather than support from network fundamentals.

The NVT ratio—a measure of market cap relative to transaction volume—spiked from 10.85 to 70.94. A rising NVT ratio implies the market cap is growing faster than network activity. This reinforces the view that ADA’s price may be overvalued.

Although whale accumulation usually drives prices higher, bearish sentiment remains strong. Signs of overvaluation suggest that a market correction could occur. If bearish pressure continues, ADA might dip to $0.93. However, if buyers regain control, ADA could climb back to the $1.2 resistance level.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.