Cardano (ADA) is one of the tokens currently in the spotlight, as many projects are doing well during the “Atcoin season”, such as Bitcoin dominance cools. The token has rallied in recent days, and one of the reasons for this resurgence has been revealed.
Cardano whales accumulate
In a job On their X platform (formerly Twitter), blockchain analytics platform IntoTheBlock noted that investor confidence in the Cardano token increased in October as ADA whales and investors accumulated 1.89 billion ADA during this period. This translates into more than $600 million invested in ADA Tokens.
It is interesting to note that the decision of these large holders already appears to be bearing fruit as the majority of this accumulation would have occurred between $0.249 and $0.271. These large holders could accumulate over the long term rather than realizing their profits as quickly as possible, and these could support a price rise to $0.4.
Last August, trading information platform Santiment highlighted the fact that Cardano was seeing its highest accumulation level dating back to September 2022, as “whales and sharks” who held between 100,000 and 10 million ADA tokens had accumulated $116.1 million in ADA since May 21.
However, sentiment towards Cardano appeared to turn bearish in September, as data de Santiment revealed that these Cardano whales sold or redistributed approximately 1.02 billion ADA during a certain period of the month.
Can ADA reach $0.4?
It remains to be seen whether this accumulation phase could trigger a rally up to $0.40. There is, however, no doubt that these whales abandoning their tokens in order to make profits Significantly affect Cardano’s resurgence.
Dan Gambardello, the founder of Crypto Capital Venture, had mentioned while providing technical analysis that Cardano’s current run could see it peak at $0.40 while almost ruling out the possibility of the token reaching the Price target of $0.45 before a retracement occurs.
Speaking about a possible retracement, Gambardello said that ADA could drop at around $0.29 and $0.30 based on the moving average structure.
Another crypto analyst, Ali Martinezalso echoed this prediction as he mentioned in a Message that the TD Sequential is showing a sell signal on the ADA daily chart with a possible correction to the $0.30 support level.
At the time of writing, ADA is trading at around $0.35, up more than 1%, according to data from CoinMarketCap.
ADA price sitting above $0.35 | Source: ADAUSD on Tradingview.com
Featured image of Bolsamania, chart by Tradingview.com