Cardano (ADA) has become one of the most talked-about tokens in the cryptocurrency world as it continues to experience a surge in its price. This surge comes at a time when Bitcoin’s dominance in the market is cooling off, leading to what many refer to as “Altcoin Season.”
One of the main reasons behind Cardano’s recent resurgence can be attributed to the accumulation of the token by large investors, known in the cryptocurrency world as “whales.” According to a post by the blockchain analytics platform IntoTheBlock, ADA whales and investors accumulated 1.89 billion ADA in October, which translates to over $600 million invested in ADA tokens.
The majority of this accumulation took place in the price range of $0.249 and $0.271, leading to speculation that these big holders are accumulating ADA for the long term rather than for a quick profit. This accumulation has raised the confidence of investors in Cardano, and many believe it could sustain a price rally to $0.40.
This is not the first time that Cardano has seen significant accumulation by large investors. In August, the market intelligence platform Santiment highlighted the fact that Cardano was seeing its highest level in accumulation since September 2022, with “whales and sharks” accumulating $116.1 million in ADA since May 21st.
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However, sentiment towards Cardano seemed to turn bearish in September, as data from Santiment revealed that these Cardano whales had sold or redistributed about 1.02 billion ADA during a certain period in the month.
The big question now is whether this accumulation phase will trigger a run to $0.40. While some analysts believe that a surge to $0.40 is possible, others are more conservative in their predictions. Dan Gambardello, the founder of Crypto Capital Venture, believes that Cardano’s current run could see it peak at $0.40 but almost rules out the possibility of the token hitting the $0.45 price target before a retracement happens.
Speaking of a possible retracement, Gambardello stated that ADA could drop to around $0.29 and $0.30 based on the moving average structure. Another crypto analyst, Ali Martinez, also echoed this prediction as he mentioned in a recent post that the TD Sequential presents a sell signal on the ADA daily chart with a possible correction to the $0.30 support level.
At the time of writing, ADA is trading at around $0.35, up by over 1%, according to data from CoinMarketCap. The price chart from Tradingview.com also shows ADA sitting above $0.35, indicating a potential upward trend for the token.
As Cardano continues to be in the spotlight, it’s clear that the accumulation by large investors has played a significant role in driving the token’s price surge. Whether this trend will continue and lead to a sustained rally to $0.40 remains to be seen, but it’s evident that the confidence in ADA is at an all-time high. With the crypto market heating up, it will be interesting to see how Cardano performs in the coming months.
