Cardano Whales Accumulate $36 Million in ADA: Could a Reversal Be Looming?
Cardano (ADA), one of the world’s leading cryptocurrencies, is making headlines as whale investors accumulate massive amounts of ADA tokens, signaling a potential bullish reversal. Despite a recent 12% decline month-over-month, analysis reveals that Cardano may be gearing up for a significant price rally fueled by stabilized momentum and strategic whale activity. Let’s break this down.
Whale Activity Aligns with Bullish RSI Divergence
Cardano’s daily charts show a bullish divergence on the Relative Strength Index (RSI). This divergence occurs when price action presents lower lows while the RSI forms higher lows, indicating reduced selling pressure and growing buyer momentum.
Between November 21 and December 18, ADA’s price dipped to new lows while RSI improved, a classic sign of a trend reversal. Historically, similar divergences for Cardano have resulted in sharp upside moves. For instance, a similar structure between late November and early December led to a 30% rally within just eight days.
The Numbers Behind the Whale Accumulation
One of the primary contributors to this potential shift is the activity of large investors. On-chain data shows that wallets holding between 100 million and 1 billion ADA have added approximately 100 million ADA (valued at $36 million) during December alone. This period coincides with declining selling pressure as indicated by the Spent Coins Age Band metric, which tracks spent coin activity.
The data suggests whales are timing their purchases based on easing sell pressure. When selling slows, accumulation resumes — a strong signal that large holders are reinforcing their positions ahead of a market shift.
Resistance Levels to Watch
While whale activity and RSI indicators are encouraging, price action still requires confirmation to solidify the bullish setup. Cardano must break through specific resistance levels to demonstrate strong reversal potential:
- $0.44: A break here would show renewed momentum.
- $0.47: This is the key level to reclaim. A move beyond this zone could open the door to further upside potential, targeting $0.50 or higher.
However, the downside remains a risk. A drop below $0.34 would invalidate the bullish reversal and could prompt a wave of selling, even among whale wallets.
How to Stay Ahead in the Market
Monitoring the RSI, whale activity, and resistance milestones is crucial for anyone investing in Cardano. Tools like the Ledger Nano X can help secure your cryptocurrency investments while you navigate the market. Check out the Ledger Nano X here for the safest way to store ADA tokens.
Final Thoughts
Cardano’s current trajectory suggests that the market’s selling pressure is weakening, and whale investors are preparing for a potential trend reversal. However, nothing in crypto is guaranteed, and price confirmation through key levels remains critical. Whether ADA can hit its targets depends largely on continued accumulation and supportive market conditions.
Stay tuned for more crypto updates and analysis as the market evolves daily.
