Cardano Whales purchased $140 million worth of ADA, making headlines as the cryptocurrency reveals a key buy signal.
The Cardano whales buy activity comes amidst ADA’s price trading in a tight range, with resistance at $1.02 and support at $0.96. This recent influx of whale investments could indicate a potential rally on the horizon.
On-chain data reveals that Cardano’s Market Value to Realized Value (MVRV) ratio has turned negative, highlighting that the coin is undervalued at its current levels. With whales accumulating aggressively, Cardano whales buy trends are sparking interest across the market.
What On-Chain Data Reveals
Cardano’s MVRV ratio, a critical metric for determining whether an asset is overvalued or undervalued, signals potential upside. As of now, the 7-day and 30-day MVRV ratios for ADA stand at -2.88% and -0.98%, respectively.
“When MVRV ratios dip into negative territory, it typically indicates that an asset is trading below its historical acquisition cost,” explains blockchain analyst Ali Martinez. “This often serves as a compelling buy signal for investors.”
This metric appears to be a green light for whales. In the past seven days, addresses holding between 10 million and 100 million ADA have accumulated $140 million worth of the token, according to on-chain analytics platform Santiment.
Why Cardano Whales Buy Trends Matter
Large-scale whale transactions are often regarded as leading indicators for potential market moves. Whale accumulation typically demonstrates heightened confidence in an asset’s short-term or long-term potential.
“Whale activity is one of the most reliable indicators of a potential rally,” says crypto market expert Michaël van de Poppe. “When you see this level of accumulation, it’s clear that institutional or high-net-worth investors are positioning for growth.”
The recent Cardano whales buy frenzy may set the stage for retail traders to follow suit, driving additional price momentum.
As of now, ADA is trading at $0.99. With whales firmly in the driver’s seat, a potential breakout above the $1.02 resistance level could send the coin toward $1.08 in the short term.
However, should whale activity slow or sell pressure increase, ADA could face a dip below its $0.96 support, potentially testing the $0.94 level.
Technical analysis from TradingView shows a consolidating price action for ADA, with momentum indicators suggesting a breakout is likely if current buying pressure continues.
Cardano Whales Buy ADA Despite Sideways Price Action
Even as ADA’s price remains range-bound, the Cardano whales buy activity highlights the growing confidence among large investors. The move signals that whales see this range as an accumulation zone, betting on the asset’s long-term prospects.
“The recent influx of $140 million into ADA by whales underscores the belief that Cardano remains undervalued despite its subdued price action,” notes Santiment’s lead analyst Brian Quinlan.
Such strategic buying typically precedes significant upward moves, as the supply held by large investors reduces market liquidity, often leading to price appreciation.
Cardano Price Catalysts to Watch
Technical Breakout:
A sustained breach above $1.02 could serve as a critical catalyst for ADA to target higher levels, with $1.08 and $1.15 as potential milestones.
Retail Trader Activity:
Increased retail participation following whale accumulation could amplify buying pressure, driving ADA’s price upward.
Broader Market Sentiment:
The overall sentiment in the crypto market remains pivotal. If Bitcoin and Ethereum rally, ADA may benefit from the spillover effect.
While the Cardano whales buy trend is bullish, potential risks include:
Whale Sell-offs: If whales reduce their positions, ADA could face increased selling pressure.
Macro Environment: Global economic conditions and regulatory developments may influence market sentiment.
If whale accumulation persists, ADA could see a breakout above $1.02, setting the stage for a 7–10% rally in the coming weeks. However, failure to sustain buying pressure may lead to a retest of $0.94.
“Cardano has the fundamentals to perform well, and with whales stepping in, we could see a strong recovery soon,” comments Nigel Green, CEO of deVere Group.
Cardano Whales Buy Signals Bullish Momentum
The recent Cardano whales buy activity has injected fresh optimism into the ADA market. With $140 million worth of ADA scooped up by large investors, on-chain data suggests the coin is undervalued and poised for a rebound.
As the cryptocurrency landscape evolves, the whale-driven demand for ADA could act as a catalyst for significant price movements in the weeks ahead. Market participants are watching closely to see whether this accumulation trend sustains ADA’s upward momentum or faces challenges ahead. Get more from The Bit Gazette
