Accumulate

Cardano

bullish

Value

Million

Cardano, a layer 1 altcoin, has experienced a market correction recently. Despite the dip in price, underlying on-chain data and technical analyses suggest a promising outlook for the ADA token.
<h2 id="strong-cardano-whales-continue-to-accumulate-strong">Cardano Whales Continue to Accumulate</h2>
In a notable development in cryptocurrency, wallets holding between 0.1 million to 10 million <a href="https://coingape.com/markets/cardano-price-prediction-how-can-whales-profit-from-ada-free-fall/" rel="noopener noreferrer nofollow">ADA</a> tokens have collectively increased their holdings. As of July 17, these wallets held approximately 5.57 billion ADA; by August 1, the figure had risen to 5.69 billion.&nbsp;
This increase reflects a growing confidence among significant holders, indicating a potential bullish sentiment in the Cardano market.
<img decoding="async" class="aligncenter size-full wp-image-210629" src="https://coingape.com/wp-content/uploads/2024/08/Source-Santiment.png" alt="" width="3840" height="1300" srcset="https://coingape.com/wp-content/uploads/2024/08/Source-Santiment.png 3840w, https://coingape.com/wp-content/uploads/2024/08/Source-Santiment-300x102.png 300w, https://coingape.com/wp-content/uploads/2024/08/Source-Santiment-1224x414.png 1224w, https://coingape.com/wp-content/uploads/2024/08/Source-Santiment-768x260.png 768w, https://coingape.com/wp-content/uploads/2024/08/Source-Santiment-1536x520.png 1536w, https://coingape.com/wp-content/uploads/2024/08/Source-Santiment-2048x693.png 2048w, https://coingape.com/wp-content/uploads/2024/08/Source-Santiment-150x51.png 150w" sizes="(max-width: 3840px) 100vw, 3840px">
The Market Value to Realized Value (MVRV) ratio, a key metric used to gauge holders’ profit or loss over 365 days, has highlighted a critical buy zone for ADA. The data shows that when the MVRV ratio falls between -20% and -28%, it often signals a buying opportunity.&nbsp;
Notably, on July 6, ADA’s price action bounced off this crucial level, suggesting that investors took advantage of the lower prices to increase their positions. Currently, the MVRV ratio stands at -15%, showing a recovery as it moves closer to the zero line, indicating diminishing losses among holders and a potential return to a neutral or profitable state.
This trend of accumulation by large holders and the movement in the MVRV ratio could suggest a positive shift in market dynamics for ADA. This shift is significant as it could precede a broader market recovery, placing ADA in a strong position for future growth.
<h2 id="strong-can-ada-rebound-above-0-4-soon-strong">Can ADA Rebound Above $0.4 Soon?</h2>
Over the past 24-hour period, the<a href="https://coingape.com/price/cardano/" rel="noopener noreferrer nofollow"> ADA price</a> has significantly declined, dropping by 6% to a current value of $0.3794. The cryptocurrency sharply decreased from a high of $0.4048 within this time frame. This decline reflects the broader market reaction, where investors react to ongoing market conditions.
The<a href="https://coingape.com/top-layer-1-crypto-projects/" rel="noopener noreferrer nofollow"> Layer 1 crypto</a> shows a recent downtrend with a possible reversal scenario. Cardano is trading near the low-value area, indicating potential bearish pressure. If bears continue to exert influence, the price might dip below $0.3919, leading to a possible further decline.
The 4-hour<a href="https://coingape.com/best-indicators-for-crypto-trading/" rel="noopener noreferrer nofollow"> technical indicators</a> for ADA suggest a bearish trend. The Relative Strength Index(RSI) is at 30.45, indicating oversold conditions. This suggests that the selling pressure on ADA may be subsiding, potentially leading to a reversal if buyers step in.
The Moving Average Convergence Divergence (MACD) shows a negative trend, with the MACD line at -0.0019 below the signal line at -0.0049.&nbsp;
<figure id="attachment_210632" aria-describedby="caption-attachment-210632" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-210632" src="https://coingape.com/wp-content/uploads/2024/08/ADAUSDT_2024-08-01_20-50-33.png" alt="Cardano Whales Accumulate 120 Million ADA in Two Weeks, What's Next?" width="1154" height="588" srcset="https://coingape.com/wp-content/uploads/2024/08/ADAUSDT_2024-08-01_20-50-33.png 1154w, https://coingape.com/wp-content/uploads/2024/08/ADAUSDT_2024-08-01_20-50-33-300x153.png 300w, https://coingape.com/wp-content/uploads/2024/08/ADAUSDT_2024-08-01_20-50-33-768x391.png 768w, https://coingape.com/wp-content/uploads/2024/08/ADAUSDT_2024-08-01_20-50-33-150x76.png 150w" sizes="(max-width: 1154px) 100vw, 1154px">
 <figcaption id="caption-attachment-210632" class="wp-caption-text">
 Cardano price chart| Source: <a rel="noopener noreferrer nofollow" href="https://www.tradingview.com/x/Hi2Tc2O0/">TradingView</a>
 </figcaption>
</figure>
However, the chart also indicates a possible upward movement if ADA can break above the $0.3919 level. This recovery could lead to a significant 20% increase, targeting the value area high of $0.4714. The point of control at $0.4584 is a crucial resistance level that ADA must surpass to maintain bullish momentum.
The post <a href="https://coingape.com/markets/cardano-whales-accumulate-120-million-ada-in-two-weeks-whats-next/" rel="noopener noreferrer nofollow">Cardano Whales Accumulate 120 Million ADA in Two Weeks, What’s Next?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Cardano Whales Accumulate 120 Million ADA in Two Weeks, What’s Next?

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