Key whale and shark accumulation prop up ADA’s price.
Cardano’s ADA is up over 60% this year, trading for $0.40 at the time of writing from an opening price of $0.2464 on Jan. 1.
In a tweet today, prominent crypto analytics platform Santiment Feed taps critical whale and shark accumulation for the impressive price run. According to Santiment, addresses with holdings between 100k to 100 million ADA now hold the most ADA combined since Nov. 8. In addition, the crypto analytics platform noted that $100k+ whale transactions today tapped a 12-week high.
Notably, whales and sharks have accumulated 405.85 million ADA since New Year’s Day, according to Santiment.
🐳 #Cardano's price is up +65% in 2023, and key shark & whale accumulating has had a lot to do with this. Addresses holding 100K to 100M $ADA now hold the most in their combined wallets since Nov. 8th. Today, $100k+ whale transactions hit a 12-week high. https://t.co/Od5c4Qw0qn pic.twitter.com/LmvmXnMZQe
— Santiment (@santimentfeed) February 4, 2023
Recall that the crypto asset broke its months-long downtrend early last month, breaking and holding above the $0.30 price point, as 28 new whales having at least 1 million ADA appeared. As reported, Santiment disclosed in December and January that the crypto was undervalued, asserting that it could easily compensate for losses posted in 2022.
Recent Price Action
ADA, like most crypto assets, enjoyed a nice price rally following the Fed rate hike decision on Wednesday. The crypto surged as high as $0.4134 before retracing to find minor support above the $0.39 price point.
The $0.39 price point remains a minor support level as it has yet to find the momentum to break the highs. A break of this minor support level could see the price fall lower to retest major support around the $0.37 price point.
Respected technical analyst Duo Nine expressed similar views in a recent report, noting that the $0.39 support level is “fragile.” However, should the price hold this level, Duo Nine expects a price run to resistance at $0.42 and $0.44.
Meanwhile, the analyst cautions that daily indicators like the relative strength index (RSI) and the moving average convergence/divergence (MACD) have flashed bearish signals as the price increased. Consequently, the analyst warns that bulls may be losing momentum and bears could regain dominance at any time.
According to Duo Nine, a break below $0.39 could see the asset’s price fall to find support at $0.36 and below that $0.34.