Cardano (ADA) is experiencing strong growth, climbing over 26% just this week. With large wallets quietly increasing their holdings and no signs of strong sell-offs, the recent price rally seems to be more than just a recovery.
Whale wallets continue to accumulate steadily.
According to data from Santiment, the wallet group holding 1 million to 10 million ADA, often referred to as whales, has steadily increased their holdings from about 33% in January to 36.15% by mid-July. Despite the strong surge of ADA in March, this group has not reduced their holding ratio. This indicates that top holders expect prices to continue rising.
Whale wallets are large ADA holders, holding from 1 million to 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 dropped to lower levels. This means that older ADA coins are not being sold, and most long-term holders seem to be maintaining their buying positions; a typical bullish signal in an uptrend.
Moreover, the significant spike in the Spent Coin Age indicator around mid-June and early April does not align with major growth phases. This suggests that the selling trend from older wallets is not necessarily a profit-taking behavior, a positive sign in a rising market.
Spent Coins Age measures the time tokens are held before moving again. A lower value indicates reduced selling pressure from older wallets.
Cardano is approaching a critical resistance level
Cardano (ADA) is currently trading around $0.75, slightly above the Fibonacci level of 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 through both of these levels, there won't be many barriers until $0.86, and from there targeting the Fibonacci extension level of 1.618 at $1.08, indicating a potential increase of about 45% from the current level.
The Fibonacci extension level is drawn from the reversal bottom of $0.51 to the peak of $0.86, with the confirmed pullback support near $0.50.
With whales accumulating, there are no signs of mass selling, and with a clear price structure, ADA is increasingly likely to hit $1.08.
However, a drop below $0.72 followed by a retest of the critical support level of $0.68 or the Fibonacci level of 0.5 could invalidate the bullish outlook.