Whales are accumulating ADA, showing strong confidence in the long term.
Short-term activity reflects an upward trend, demonstrating the market's readiness to support a price increase.
In the past 24 hours, Cardano [ADA] has decreased by 1.69% but has increased by 7.62% over the past month.
This recent decline stems from a broader market correction that has caused total market capitalization to drop to $3 trillion.
According to TinTucBitcoin's analysis, ADA is highly likely to return to an upward trend in the coming days, as sentiment continues to place this asset for a significant price increase.
Accumulation by whales and activity of spot traders
Whales, who control a large portion of the circulating supply of ADA, have spent the past month accumulating this Token.
This market group purchased 410 million ADA, valued at approximately $285 million during this period.
Source: Santiment
Buying into weakness often signals long-term confidence. This accumulation phase occurs while prices remain suppressed, implying expectations for a breakout in the future.
Similarly, in the spot market, Netflow has maintained an upward trend over the past few months.
Exchange Netflow compares buying and selling activity to determine which side of the market is dominant.
Source: CoinGlass
Since March, approximately $416 million worth of ADA has been purchased from the market.
Although this accumulation phase has not led to a significant surge, it suggests that traders are preparing for a substantial increase.
The bullish potential of ADA remains strong
On the chart, ADA is showing volatile movement without a clear pattern to guide accurate predictions.
Using Fibonacci retracement, TinTucBitcoin has identified several levels that could limit or define the price movement of ADA.
At the time of writing, Cardano is hovering around $0.7034—the resistance level it has tested for ten consecutive days.
Source: TradingView
To assess the potential for ADA to break through this level, analysts have examined the Liquidity Heat Map to identify liquidity clusters.
Liquidity clusters tend to attract price movement, pulling it towards those areas.
Currently, many liquidity clusters are stacking above the price of ADA, reaching a high of $0.74.
Source: CoinGlass
This development indicates that ADA may surpass the current resistance level and move towards higher price levels on the chart.
Short-term bullish potential remains strong
In the derivatives market, bullish sentiment remains strong as long-term traders continue to open new positions.
Open Interest, which tracks the value of outstanding derivatives contracts, has increased, currently totaling $778.99 million.
Source: CoinGlass
This increase indicates growth in active positions and overall market participation.
To gain a better understanding of the trend, analysts have examined the Funding Rate. Currently, the Funding Rate is at 0.0084%, confirming that most positions are long-term.
This reinforces the overall bullish sentiment across the market.
In summary, Cardano continues to attract accumulation from whales and traders, indicating confidence in its long-term value, but currently needs to build short-term momentum.
Source: https://tintucbitcoin.com/cardano-whales-accumulating-410-million-ada-breakthrough-in-may-approaching/
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