Anticipating a potential surge, Cardano’s [ADA] price is expected to rise in the upcoming days. This prediction is grounded in the notable accumulation of the token by whales over the past 14 days.
Cardano Whales Poised to Initiate a new Phase in their Journey
Utilizing Santiment’s data, we observed an increase in ADA holdings within the 1 million to 10 million cohort. On December 20th, this group held 15.96% of the supply, which has now risen to 16.36%. Despite a recent market downturn triggered by Bitcoin’s slump, ADA, initially trading at $0.63, sustained a 30-day performance increase of 29.14%, even after dropping to $0.55.
It’s worth noting that this isn’t the first instance of whales engaging in a buying spree. A similar event was reported by AMBCrypto in November 2023, preceding a notable ADA price rally. Considering this historical pattern, a similar positive outcome may be expected.
Technical Signals Indicates it’s Time to Invest
Could ADA replicate its past performance? To assess this, let’s delve into the technical aspect. Examining the 4-hour chart, the Aroon Down (blue) dropped to 21.34%, while the Aroon Up (orange) surpassed its January 4th value of 01.06%.
Currently, the Aroon Up stands at 14.29%, indicating a gradual return of bullish momentum. However, the Relative Strength Index (RSI) signals a slow impact on price recovery, standing at 33.14, showcasing Cardano’s recuperation from oversold levels. Achieving a return to $0.60 requires an increase in buying pressure.
Source: Tradingview
Despite this, the Directional Movement Index (DMI) signals a different scenario. The +DMI (green) stands at 10.78, while the -DMI (red) is observed at 38.16. For ADA’s price to surge, the Average Directional Index (ADX) needs to cease supporting the -DMI. A potential price increase might occur if the +DMI surpasses the -DMI and the ADX (yellow) remains above a reading of 25.
Furthermore, examining the Adjusted Price-DAA Divergence, the metric currently registers at -65.50%.
Providing context, the Adjusted Price-DAA Divergence indicates the variance in Daily Active Addresses (DAA) that prompts entry or exit decisions. With the price experiencing a greater decline than the DAA, this suggests a potential entry opportunity before a potential bull market commences.
