Cardano (ADA) has experienced a 107% price surge following a significant accumulation of tokens by whale investors.
Since November 2023, large holders have added 1.41 billion ADA to their portfolios, sparking a rise in the cryptocurrency’s market capitalization.
Despite a 4.7% decline in the past 24 hours, with ADA currently trading at $0.7593, the token has seen a 41.7% increase over the past year, indicating strong long-term growth.
Short-term volatility is evident as ADA’s price fluctuated between $0.7562 and $0.815 recently.
Whale Accumulation and Market Trends
Market intelligence platform Santiment reported that whales—wallets holding at least 1 million ADA—have steadily accumulated tokens since November 2023.
This large-scale accumulation represents 2.35% of the total ADA supply. Despite some market pullbacks, the ongoing whale activity has been a major contributor to the surge in ADA’s price.
According to Santiment, ADA has increased by 107% since this accumulation began, signaling strong confidence in the cryptocurrency among institutional investors.
Long-Term Confidence in Cardano
Supporting data from IntoTheBlock shows that long-term holders—those with ADA for over a year—have increased their holdings by 1.81%, indicating growing confidence in Cardano’s long-term value.
Meanwhile, mid-term holders raised their positions by 7.65%, while short-term traders saw a decline of 11.75%. This shift suggests that more investors are holding ADA for the long haul rather than engaging in short-term trading.
Potential Price Breakout
Crypto analysts are watching closely to see if ADA can continue to rise. Trader Steve, a popular crypto analyst, noted that ADA might follow a similar price movement to XRP’s recent rally, which saw it break resistance levels and reach a seven-year high.
Currently, ADA is still far from its December 2024 high of $1.32. Analysts like Yoel Jr. believe that ADA needs to close above $0.81 to confirm a bullish trend. Otherwise, the token might remain in a “boring zone” without significant upward momentum.
What’s Next for Cardano?
Despite the uncertainty, Jonathan Carter, another analyst, identified a bull flag formation on ADA’s daily chart, suggesting the potential for an upward move.
He noted that a price retest around $0.60 could offer a stronger entry point for buyers, with potential price targets at $0.845, $1, and $1.325.
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