The recent increase in Cardano (ADA) accumulation by large investors may indicate potential market changes. This article explores the current status of ADA, important chart patterns, and trading activity.
Whale Accumulation of ADA
Data from analyst Ali Martinez confirms a sharp rise in ADA accumulation by whales over the past 24 hours. These wallets, holding between 1 million and 100 million ADA, collectively added 100 million tokens during this period. Notably, this surge coincides with a brief recovery in ADA’s price, which currently trades at $0.875.
Chart Patterns and Their Significance
According to CryptosRus, ADA is forming an inverse Head and Shoulders pattern on the 9-day chart, suggesting a potential price reversal after a prolonged downtrend. This pattern is characterized by three troughs, with the middle one being the lowest. A neckline drawn across the interim highs acts as a key resistance point.
Trading Activity and Market Conditions
Currently, Cardano is priced at $0.875, with a 24-hour trading volume of $2.05 billion. This reflects a 3% increase over the last day, yet an 11% decline over the past week. The short-term recovery could be linked to whale activity, but no long-term shift has been confirmed, as the price remains below the key $1 level, viewed as a significant barrier.
The situation with ADA accumulation by large investors and the formation of chart patterns may influence the token's near future. Monitoring changes in trading volume and price reaction at key levels is crucial.
