Large-scale investors (whales) have collected approximately 40 million ADA tokens. Speculation arises over whether this could lead to a breakthrough and push the Cardano price to $0.90.

Cardano Uptrend and the Whale Game

Large-scale investors (whales) have collected approximately 40 million ADA tokens. Speculation arises over whether this could lead to a breakthrough and push the Cardano price to $0.90.

Hey there! Ever wondered what goes on behind the scenes in the crypto world? Let's talk about a recent event starring Cardano (ADA), where 100M to 1B coin holders amassed over 40 million ADA tokens in just two days!

This whale surge took place as ADA's price soared from around $0.66 to over $0.80, with whale holdings surging to a near-record high of nearly 3.11 billion. The increased whale activity seemed to trigger this costly-cryptocurrency crashing onto the scene like a torpedo!

Source: Santiment

It's not often these days that things happen so suddenly without a preceding hint—not that we're complaining! This sudden coalescence of whale activity and price action hinted at a building confidence, but still, we needed solid market confirmation to be sure.

ADA escaping the channel

With a convincing move, our Cardano friend broke the descending channel barrier and reached a high of $0.80 before halting at $0.85. At the time of writing, ADA is hovering around $0.7944.

Interestingly, the Moving Average Convergence Divergence (MACD) histogram started to narrow, suggesting that the temporary momentum might be losing its grip. The key support area at $0.75, respectively, coincides with the historic breakout area.

If ADA manages to maintain above $0.75, it could bolster the bullish narrative and consolidate at $0.82, later moving to $0.85. However, if it happens to break below $0.75, we might witness a larger retracement, with a potential support zone at $0.70 in the coming days.

Source: TradingView

ADA's liquidation dance

If we delve into ADA's derivatives side, CoinGlass data showed that the last major long liquidation cluster formed around $0.789. But, short positions blew up above this level, amounting to about 40M cumulative shorts set to be triggered at $0.90.

From $0.805 to $0.875, short clusters formed primarily on the Binance and Bybit platforms.

Source: CoinGlass

If the price ascends, these shorts might instigate a domino effect of liquidations, leading to increased market volatility. On the flip side, a plunge below $0.775 puts longs under pressure, with positions piled up at Bybit and OKX at the bottom from $0.760.

In brief, ADA's next move is likely to trigger swift liquidations either way, as large liquidity gaps flank both sides of the current range.

A quick look at the bigger picture

While looking at short-term fluctuations is fascinating, the real action often lies in the long run. Cardano has its sights set on highs of $1.4045 or even $2.05 by the end of 2025, if the project continues to develop and gain traction in the market.

But, we can't ignore the fact that these predictions are based on ideal market conditions and potential advancements in the project. In the meantime, Cardano is playing a dangerous game of whales, momentum, and liquidations, so buckle up and hold that breath!

Trivia

1. Did you know that Cardano was founded by Charles Hoskinson, a co-founder of Ethereum (ETH)?
2. Cardano's unique selling proposition lies in its focus on scalability, interoperability, and sustainability, particularly through its use of a Proof-of-Stake (PoS) consensus mechanism.
3. Whale activity can indeed significantly influence cryptocurrency prices. Watching these colossal investors and analyzing their actions can potentially help in predicting market movements.
4. The recent surge in Cardano's whale activity, as seen in the exchange of over 40 million ADA tokens, could be a significant indicator for future investment in crypto finance, especially with the price of ADA reaching over $0.80.
5. As Cardano's price continues to rise, astute investors may look to diversify their portfolios by investing in other cryptocurrencies like Bitcoin, as the entire crypto market tends to move in tandem.
6. In the long run, Cardano aims to reach highs of $1.4045 or even $2.05 by 2025, making it a potential target for investors who are interested in the Cardano token and its potential growth in the finance world, particularly as it continues to develop and gain traction in the market.

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