Cardano (ADA) is experiencing strong growth, climbing over 26% just this week. With large wallets quietly increasing their holdings and showing no signs of significant sell-offs, the recent price surge seems to be more than just a recovery.
Whale wallets continue to accumulate steadily
According to data from Santiment, the group of ADA wallets holding between 1 million and 10 million, often referred to as whales, has steadily increased their holdings from about 33% in January to 36.15% in mid-July. Despite ADA's strong growth in March, this group has not reduced their holding ratio. This indicates that top holders expect the price to continue rising.
Whale wallets are large ADA holders, holding between 1 million and 10 million tokens. Their behavior often influences market trends.
No significant sell-off has been recorded
The Spent Coins Age indicator surged in mid-June but has since decreased to lower levels. This means that older ADA coins are not being sold off and most long-term holders seem to be maintaining their buy orders; a typical bullish signal in an uptrend.
Additionally, the significant spike in the Spent Coin Age indicator around mid-June and early April does not coincide with major growth spurts. This suggests that the selling trend from older wallets is not necessarily profit-taking behavior, a positive sign in a rising market.
Spent Coins Age measures the time that tokens are held before being moved again. Lower values indicate reduced selling pressure from old wallets.
Cardano is approaching an important resistance level
Cardano (ADA) is currently trading around $0.75, slightly above the Fibonacci 0.618 ($0.7287) and is heading towards a double resistance area consisting of:
Strong horizontal level at $0.77
Fibonacci 0.786 at $0.78
If the price of Cardano (ADA) breaks both of these levels, there will be few obstacles until $0.86 and from there targeting the extended Fibonacci 1.618 at $1.08, representing a potential increase of about 45% from the current level.
The extended Fibonacci is drawn from the reversal bottom of $0.51 to the peak of $0.86, with the confirmed retracement support near $0.50.
With whales accumulating, showing no signs of mass selling and a clear price structure, ADA increasingly has the potential to reach $1.08.
However, a drop below $0.72 followed by a retest of the important support level at $0.68 or the Fibonacci 0.5 level could invalidate the bullish outlook.