Key Takeaways
- Cardano whales absorbed 120 million ADA in two weeks as spot outflows rose. Despite bullish price formation, ADA must close above $0.6566 to confirm a breakout amid resistance pressure.
Cardano [ADA] posted a modest gain of 3.64%, at press time, continuing its upward movement of 7% over the past week.
But beyond the surface, accumulation activity by large holders may be setting the stage for something bigger.
Whale wallets holding 1M–10M ADA absorbed 120 million tokens (worth roughly $71 million) over the past two weeks, according to Santiment data shared by Ali Martinez.
ADA whales buy big
Source: Santiment
This kind of buying activity often strengthens investor confidence, as reflected in recent spot market trends.
According to CoinGlass, investors withdrew $8.17 million worth of ADA from centralized exchanges over the past week, moving it into private wallets for long-term holding.
Source: CoinGlass
If this accumulation trend continues, ADA is likely to rally. AMBCrypto’s analysis points to a potential upswing on the horizon.
Rally signal confirmed?
From a technical lens, the story is at a crossroads.
At press time, ADA was forming a symmetrical triangle, a pattern typically seen before high-volatility moves. The price has tested both support and resistance levels within this formation but hasn’t broken out yet.
Notably, ADA traded at $0.5975, just shy of the triangle’s upper bound and the next major resistance at $0.6566.
Source: TradingView
The Parabolic SAR, a trend-following indicator, also painted a bullish picture, with the dotted lines now forming beneath the price – a signal often tied to upward movement.
Having said that, the breakout remains unconfirmed until ADA decisively closes above the pattern’s top line.
Will ADA break through the obstacle?
An analysis of the Bollinger Bands revealed ADA traded near the upper band at $0.5965, which often acts as short-term resistance.
Source: TradingView
Historically, ADA’s contact with the upper band has led to two scenarios: ADA could break above the upper band, which may initially seem bullish, but could eventually lead to a correction.
Alternatively, the price could reject the upper band and move toward the lower band, which would then act as support for a broader upward move.
