Cardano: Whales bet 80M ADA to reclaim $1.2 level -Will it work? – Crypto News Aggregator

• Cardano whales purchased 80 million ADA tokens
• ADA declined by 8.51% over the past week as bearish sentiment persists.

Since hitting a high of $1.327, Cardano [ADA]  has struggled to maintain an upward momentum. At press time, it dropped to hit a low of $0.911.

This decline has created a buying opportunity for large holders. As such, whales have turned to buying the dip, according to the popular crypto analyst Ali Martinez.

Cardano whales buy 80 million tokens

In his analysis, Martinez observed that Cardano whales have turned to a buying spree. As such, these whales have bought over 80 million ADA tokens in the past 48 hours.

Whales accumulating ADA shows their optimistic view of the market’s future value.

Over the past 2 days, as whales accumulated, ADA rose from $0.93 to $1.182, then pulled back to $1.09.

This price action suggests that despite increased whale accumulation, the overall market remains bearish, with bears still dominating.

What ADA charts say?

While increased buying from whales typically creates buying pressure and drives prices up, ADA bears are outweighing bulls.

At the time of writing, ADA was trading at $1.09, marking a 6.42% decline on daily charts and an 8.51% drop on weekly charts.

Therefore, current market conditions show that sellers and bearish sentiments are dominating the market.

This bearishness was evidenced by the fact that most traders were taking short positions. Based on the Long/Short Ratio, short positions dominated the market at 52.1%. This implies that most investors anticipate prices to drop further.

Additionally, this bearishness may arise from the market view that the recent rally may have pushed ADA to become overvalued.

These overvaluation signals were evident as the Price DAA Divergence turned negative and stayed that way over the past week.

When DAA divergence remains negative for a long period, it suggests the recent price rally has outpaced network activity, indicating speculative buying rather than strong fundamentals.

This phenomenon is also supported by a rising NVT ratio. The ratio has spiked from 10.85 to 70.94. Often, a rising NVT ratio implies the market cap or price is growing faster than transaction volume. This may suggest ADA is currently overvalued, and the price increase is not supported by a corresponding growth in network activity.

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Read Cardano’s [ADA] Price Prediction 2023-24

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Therefore, although increased whale accumulation tends to drive prices up, ADA bears remain strong. With a potential overvaluation signal, ADA seems set for a further market correction to meet its real value.

If this sentiment continues, ADA could dip to $0.93. Subsequently, if buyers retake the market, the altcoin could reclaim the $1.2 resistance level.