Cardano's $0.7 Target Possible as Major Investors Acquire $204M in ADA
Cardano's Price Stability and Investor Confidence
Cardano's price remains stable above $0.57 despite a recent minor pullback. The cryptocurrency bounced back from a crucial support level last week, suggesting possible upward momentum. On-chain data reveals that significant stakeholders have injected $204 million into ADA, reflecting growing market confidence.
Technical Indicators Suggest Bullish Reversal
Technical indicators highlight a decrease in bearish pressure, hinting at a potential bullish reversal. ADA has seen a weekly increase of over 7%, breaking through a long-term downtrend. The near-term target lies between $0.60 and $0.70.
Speculation surrounding the resolution of the U.S. government shutdown is driving a recovery trend in the crypto market. Traders are optimistic about Bitcoin reaching the $105,000 milestone, boosting confidence across the sector.
Large ADA Accumulations by Major Investors
Key Cardano stakeholders have significantly increased their holdings following a price drop of over 50% last week. In the past four days, large investors, or 'whales' and 'sharks,' have accumulated 348 million ADA, valued at approximately $204.3 million. This accumulation represents close to 1% of the total ADA supply, indicating strong belief in the asset's potential to reclaim the $0.60 mark.
The data suggests a notable rise in ADA holdings among wallets containing 100,000 to 100 million coins, pointing to a strategic buildup by major market players anticipating a future price surge.
Potential for ADA Price Breakout
As of now, ADA is priced at $0.5788, marking a 0.50% gain. The price movement remains within significant support and resistance levels. The MACD is showing a slight bullish crossover, albeit with weak momentum, as indicated by a small histogram. Meanwhile, the RSI stands at 56.89, suggesting ADA is in a neutral to healthy range before becoming overbought.
A breakout above $0.60 could pave the way for further gains, potentially testing resistance at $0.65 and then $0.70. Conversely, failure to maintain above $0.55 might lead to a decline towards $0.50, highlighting the importance of this support zone.