Whales accumulating an additional 150 million ADA is a signal reinforcing confidence in Cardano, but ADA needs to surpass $0.93 to avoid short-term price drop risks.
Whale accumulation of ADA, combined with scarcity signals and a dominant long ratio in the derivatives market, are key factors shaping the short-term and long-term outlook for Cardano.
MAIN CONTENT
Whales have accumulated 150 million ADA in two weeks, reflecting expectations for a price increase in Cardano.
The stock-to-flow index of ADA has surged, indicating increasingly scarce supply and potential for price increases when demand is solid.
With 77% of derivative traders holding long positions, ADA needs to maintain its bullish structure above $0.85 and break above $0.93 to avoid liquidation squeeze.
What does the additional accumulation of 150 million ADA by whales signal?
In the past two weeks, whales in the Cardano market have purchased nearly 150 million ADA, showing an increasing level of confidence in the price potential of this cryptocurrency. The accumulation occurred while retail investors were cautious, signaling a shift towards smart money.
The emergence of large accumulation phases by whales often signals significant market volatility ahead. When institutional investors or large holders significantly increase their holdings in uncertain market conditions, many traders often expect this move to trigger the next strong price increase for Cardano.
However, the sustainability of this buying force depends on whether large capital can offset the impact of overall market instability and overcome key technical resistance levels.
Can Cardano maintain its upward momentum within the rising price channel?
Currently, Cardano is trading within a stable uptrend channel, using $0.78 as the main support and $0.93 as the next resistance level to challenge. According to Fibonacci analysis, the next targets for increases are $0.95 and $1.02.
Cardano continuously records higher lows, indicating good resilience of the bullish trend, but the MACD indicator signals a short-term correction.
– TradingView data analysis, June 2024
In addition to technical prospects, Cardano is being closely monitored for whether it can maintain the rising channel. If ADA loses this channel, the risk of a deep correction towards the $0.70 support will increase, affecting both investor sentiment and market momentum.
Maintaining higher lows indicates that buyers are still actively defending the price area, but profit-taking pressure and the short-term weakening signal from the MACD also warn of potential strong fluctuations or temporary corrections before recovery.
Does the surge in the stock-to-flow index signal that ADA supply is becoming increasingly scarce?
Cardano's stock-to-flow has recently surpassed 400, reaching its highest level in months, reflecting a narrowing circulating supply compared to the amount issued into the market. Historically, high stock-to-flow ratios for scarce assets have often been a fundamental factor supporting price increases when demand remains steady or grows.
“A strong increase in the stock-to-flow ratio will be an important indicator of the potential to sustain a long-term bullish story for Cardano, as long as demand does not decline.”
– Santiment analysis data, 2024
However, for the scarcity signal to genuinely lead to long-term price increases, the market needs to demonstrate continuous buying inflow. If the stock-to-flow index rises but the demand does not follow up, the ADA's upward momentum may only be short-term or stall.
Are derivative investors pushing ADA into a squeeze risk?
According to data from Binance, currently up to 77% of derivative investors are holding long positions in ADA, while only 23% are betting on price declines. The long/short ratio is as high as 3.40, reflecting overwhelming optimistic sentiment.
Such a strong one-sided sentiment often increases the risk of a mass liquidation if ADA loses key support zones. However, this also reflects strong confidence from the majority of investors about the potential for Cardano's price to continue rising, especially as accumulation and scarcity signals reinforce this view.
The short-term trend of ADA will largely depend on whether the price can hold above $0.85. If it continues to hold and reclaims the $0.93 level, ADA could advance to $1.02 and beyond; conversely, dropping below $0.85 could easily lead to a chain liquidation phenomenon in the derivatives market.
What opportunities and risks does Cardano face amidst large accumulation and a booming derivatives market?
Overall, Cardano is at a turning point with large accumulation from whales, strong scarcity signals, and a clearly dominant long position in the derivatives market.
The strength of Cardano currently relies on the scenario of maintaining prices above $0.85 and reclaiming the resistance level at $0.93. Success at these levels would open up the potential to reach $1.02 and could reinforce long-term bullish prospects; failure could lead the market into a slowdown with liquidation pressure.
Frequently asked questions
What does the accumulation of Cardano by whales in the past two weeks signify?
The accumulation of nearly 150 million ADA by whales indicates that smart capital is placing long-term expectations on Cardano, reinforcing price growth potential if strong demand continues.
How does the stock-to-flow index of ADA affect its price?
When the stock-to-flow index surges, ADA supply becomes scarcer. If demand remains stable, this could push ADA prices higher over time.
What does a long/short ratio of 77% in the ADA derivatives market mean?
With 77% of contracts open betting on rising prices, market sentiment is heavily leaning towards bullish. However, the risk of liquidation will be significant if ADA unexpectedly drops below key support levels.
What price level does Cardano need to surpass to strengthen the bullish trend?
ADA must hold above $0.85 and break the resistance at $0.93. This will help maintain the upward momentum towards higher targets like $1.02.
What could happen if ADA loses support at $0.85?
A price drop below $0.85 could trigger a wave of long position liquidations in the derivatives market, causing strong price fluctuations and posing a risk of deep correction.
Source: https://tintucbitcoin.com/ada-se-but-pha-nho-ca-voi/
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