Cardano (ADA) has faced a lack of bullish momentum recently, keeping the altcoin from staging a full recovery. However, despite this, it has maintained a micro uptrend, supported by a group of strong investors.
These holders are not liquidating their positions, and their support could help drive ADA’s price toward higher levels, possibly reaching $0.85.
Cardano Whales Move To Buy
Whale addresses have been actively accumulating ADA at current low prices, which signals confidence in a potential recovery. Over the past week, addresses holding between 100 million and 1 billion ADA have added over 240 million ADA, worth more than $175 million. This significant accumulation by whales indicates their belief in Cardano’s long-term value and the likelihood of a price increase.
The accumulation of ADA by these large investors shows a strong conviction in the asset’s future performance. This behavior suggests that the whales are positioning themselves for a potential recovery, and their support could provide the necessary boost to help Cardano break through key resistance levels.
Cardano’s macro momentum is showing promising signs despite the overall bearish market conditions. The Mean Coin Age, a metric that tracks the average age of coins in circulation, has been steadily increasing. This uptick suggests that long-term holders (LTHs) are refusing to sell and are also holding on to their ADA tokens for extended periods. This reflects a sense of confidence among LTHs regarding the recovery of Cardano’s price.
The increase in Mean Coin Age implies that investors believe in Cardano’s long-term potential and are not inclined to liquidate their holdings during the current market downturn. This level of confidence from LTHs provides strong support for ADA and could help prevent any drastic price declines.
ADA Price Remains Subdued
Cardano is currently up by 6% in the last 24 hours, but this increase has not been sufficient to break the crucial $0.77 resistance level. Despite the recent uptick, ADA has been unable to breach this barrier, which is essential for confirming the altcoin’s recovery.
The factors discussed suggest that, with continued support from investors and whales, Cardano could break past the $0.77 resistance and rise to $0.85. This level is key in establishing a recovery rally for ADA, and if successfully breached, it could lead to sustained gains in the near future.
However, if Cardano fails to breach the $0.77 barrier, it will likely continue consolidating above the $0.70 support. In this case, ADA will remain vulnerable to a potential drop to $0.62, which could extend the consolidation phase and delay any significant recovery.
Disclaimer
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