25 April, 2024



Cardano Holders Brace for Major Surge Amidst Market Turbulence

28 Feb, 2024

28 Feb, 2024

  • Whales accumulating ADA during dips suggests potential price resurgence, according to historical patterns and on-chain data.
  • Majority of Cardano wallets currently hold unrealized profits, indicating strong investor sentiment despite recent losses.
  • Positive momentum indicators like MACD and AO support ADA’s uptrend, although caution is warranted below certain price levels.

Cardano holders have been experiencing a rollercoaster ride in the crypto market this week, as on-chain data from Santiment indicates more losses than profits. The network has witnessed a shedding of ADA holdings at a loss, potentially signaling a sell-off. However, amidst this turbulence, there are glimpses of hope for bullish investors. Large wallet holders seem to capitalize on the dip, accumulating ADA with transactions valued at $100,000 or higher.

Source: Santiment

The current live Cardano price is $0.634677, reflecting a 2.03% increase over the last 24 hours. Despite recent setbacks, there’s optimism surrounding potential price recoveries. Notably, spikes in whale transactions coincide with realized losses in the Network Realized Profit/Loss metric. This pattern has emerged following Cardano price drops in the past, suggesting that whales are strategically accumulating during dip phases, hinting at a potential price resurgence in the future.

Historically, such accumulation phases often mark the end of capitulation, where large wallet investors exhaust their selling capacities. This phase transition typically triggers increased buying pressure as traders seek to capitalize on discounted prices. Santiment analysis emphasized that the ratio of profitable on-chain transfers on the Ethereum and Bitcoin networks further supports the notion of an impending Cardano recovery.

Currently, a significant majority of Cardano wallets (77.84%) are holding unrealized profits, while only 15% are experiencing unrealized losses. IntoTheBlock data suggests that the $0.63 level poses as the main resistance on Cardano’s path to $0.75. 

Source: IntoTheBlock

Furthermore, indicators such as the Moving Average Convergence Divergence (MACD) and the Awesome Oscillator (AO) indicate positive momentum for ADA’s uptrend. However, despite these optimistic signals, there remains a level of caution.

A daily candlestick close below the 23.6% Fibonacci retracement level, currently at $0.5957, could challenge the bullish thesis. In such a scenario, Cardano’s price might retest the 50% Fibonacci retracement level at $0.5446 before initiating a recovery.

Source: TradingView

While Cardano holders weather the storm of current market fluctuations, the data suggests a potential for recovery soon. With strategic accumulation by whales and positive momentum indicators, ADA may be poised for a resurgence, offering an opportunity for sidelined buyers to enter the market at a discount.

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