Whales are accumulating again...Cardano Rebound Signal Detected

▲ Cardano (ADA)/ChatGPT generated image ©

As Cardano recovers its key support level and whale investors continue to steadily accumulate, the market is focusing on the possibility of entering a new upward cycle.

According to the cryptocurrency media outlet Bitcoinist on May 16 (local time), Cardano (ADA) has recently turned bullish again, breaking through the $0.25 resistance level amid the cryptocurrency market's rebound. The outlet analyzed that ADA's bullish potential is growing as its price structure and on-chain indicators simultaneously began to improve.

Cryptocurrency analyst Ali Martinez diagnosed that ADA is preparing for a new upward rally based on the SuperTrend indicator. This indicator accurately captured the subsequent 73% decline after issuing a sell signal on September 25 last year. However, it has recently switched back to a buy signal on the daily chart, which suggests the end of a local bottoming phase and the possibility of a trend reversal, he explained.

Martinez predicted that if the current trend continues, ADA could first rise to the $0.33 resistance level. If the upward momentum continues, the secondary target area of $0.42 could also be open, he analyzed. However, the outlet emphasized that maintaining the $0.25 support level is a key condition for the bullish scenario.

On-chain data also showed signs of improving investor sentiment. According to Santiment, whale and large investor wallets holding more than 1 million ADA have been continuously accumulating ADA since December 2023. The total amount held by these wallets currently exceeds 25.09 billion ADA, which accounts for approximately 67.47% of the total circulating supply.

The outlet assessed that despite Cardano's market capitalization decreasing by 71% over the past nine months, large investors are continuing their low-price buying strategy. It analyzed that if this accumulation trend continues, it could positively impact ADA's price momentum and create a gradual upward trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*