In the past two weeks, Cardano (ADA) whales have quietly accumulated nearly 150 million ADA – a move that reflects growing confidence in the long-term prospects of this altcoin. Notably, this large-scale accumulation occurred just as retail investors became cautious, making market developments even more interesting.
As of the time of writing, ADA is fluctuating around the threshold of 0.92 USD and continues to maintain important support levels. In fact, whenever 'whale' money floods in, the market often prepares for a significant shift. Therefore, many traders are hopeful for a stronger breakout on the price chart.
The important question now is whether this enormous capital flow can offset the general market uncertainty and drive ADA past important resistance levels.
Cardano forms an upward structure
Cardano (ADA) has formed a clear upward trend since July 2, with a series of higher highs and higher lows indicating that buying pressure is increasingly dominant. The 0.84 USD region currently serves as solid support, while 0.97 USD becomes the important resistance to conquer. If this level is surpassed, ADA could confirm the continuation of the upward trend with a potential target towards 1.14 USD.
Notably, the MACD indicator has positively reversed, negating the bearish cross signal and is rising again – suggesting that the recent correction may have ended. Concurrently, the RSI also reinforces the bullish outlook as it maintains above the neutral threshold of 50 and continues to rise. The combination of these signals suggests that the most likely scenario for ADA at the current stage is upward.
Stock-to-flow ratio skyrockets: A sign of increasing scarcity?
The stock-to-flow ratio of Cardano has just recorded an impressive breakout, surpassing the threshold of 400 – the highest level in several months. This is a comparative indicator between the amount of ADA in circulation and the newly issued supply, where an increasing value often reflects increasingly apparent scarcity.
In the past, periods of tight supply often created conditions for asset values to soar if demand remained stable. However, the market still needs a confirming factor: whether the accumulation momentum can actually transform into long-term buying pressure. Because without ongoing demand, even signals of scarcity may struggle to push prices up significantly.
Therefore, the upward momentum of the stock-to-flow ratio will serve as an important 'guiding light', determining whether ADA can continue to reinforce the narrative of sustainable growth in the long term.
Outlook: Positive but needs confirmation
The outlook for Cardano is gradually leaning towards a bullish trend as whales accumulate strongly, scarcity signals increase, and the bulls dominate.
However, sustainability is only ensured if ADA surpasses the resistance of 0.97 USD. If successful, Cardano could potentially move towards the level of 1.14 USD and beyond.