Cardano (ADA), one of the most prominent blockchain platforms, has caught the attention of whale investors yet again. Over the past week, these major holders have added a staggering 100 million ADA to their portfolios. However, despite the accumulation, ADA prices remain stubbornly under $0.40, leaving many investors questioning the cryptocurrency’s trajectory.
Analyzing Cardano’s Market Performance
The Cardano price has experienced minimal movement in recent days, reflecting uncertainty in the market. Over the past seven days, the cryptocurrency has seen a rough 6% decline, with prices holding near the critical 20-day exponential moving average (EMA). This resistance point has historically determined Cardano’s short-term direction. If this level is lost, a sharp drop may occur once again, as seen on December 11 when prices tumbled by nearly 25%.
Adding to the cautious mood, On-Balance Volume (OBV) data hints at quiet selling. Between December 28 and January 5, despite a slight price uptick, the OBV indicator demonstrated weakening volume support. Sellers have been distributing their holdings while buyers remain on the sidelines, leading to hesitation in ADA’s price action.
Whale Activity Keeps Cardano Afloat
Despite the weakening technical indicators, large wallet holders have been seen accumulating ADA heavily. On-chain data reveals that wallets holding:
- 1 to 10 million ADA increased their balances by 20 million tokens.
- 10 to 100 million ADA added an impressive 80 million tokens to their holdings.
This combined accumulation of approximately 100 million ADA equates to $40 million based on current prices. The Money Flow Index (MFI), which measures buying pressure by analyzing price and volume movement, has also shown a positive trend, further supporting the idea that whales are taking advantage of the dips.
What’s Next for ADA Prices?
As of January, ADA continues trading in a tight range between $0.37 and $0.40. A breakout above $0.40 is necessary to signal the start of a bullish rally. Such a move would likely bring $0.43 into focus and solidify confidence among investors. Conversely, a breakdown below $0.37 could open the doors to further bearish trends, with key levels like $0.35 and $0.31 back on the table.
Spotlight on Crypto Investment Tools
Whether you’re a seasoned trader or a newcomer, staying informed and using reliable tools can make a significant difference in your crypto strategy. For those interested in monitoring market activity, platforms like CoinMarketCap allow users to track trends and on-chain metrics in real-time. As Cardano enters another crucial phase, investing in a hardware wallet such as the Ledger Nano X can help secure your ADA holdings while you wait for favorable market conditions.
Disclaimer
As with any investment, the crypto market is subject to high volatility. Always conduct your own research and consult a financial advisor before making decisions. This article does not constitute financial or investment advice and is for informational purposes only.
