Cardano (ADA) Price Approaches 50% Rally Driven by Whale Activity
Following the recent Bitcoin surge near $100K, Cardano has positioned itself as a leading altcoin. With a fully diluted valuation of approximately $44 billion and an average daily trading volume of around $3 billion, Cardano's price increased over 200 percent in three weeks, reaching about $0.99 during early New York trading on Wednesday.
Technically, Cardano’s weekly Relative Strength Index (RSI) surpassed 70 percent for the first time since earlier this year. The price is nearing a breakout from a megaphone chart pattern, targeting its all-time high. The ADA price is projected to rally at least 50 percent towards the upper boundary of the megaphone structure, aligning with a resistance level around $1.5. The ADA/BTC pair has also rebounded significantly, with the macro RSI exceeding 70 percent for the first time since 2021.
If an altcoin correction occurs, ADA is expected to find solid support above 79 cents, previously a strong resistance level.
Major Factors Fueling Cardano (ADA) Price Up
The positive outlook for Cardano is supported by substantial network developments in recent years. The total value locked (TVL) in Cardano has reached a new all-time high of over $600 million, with a stablecoins market cap exceeding $22 million.
Prominent DeFi projects utilizing the Cardano network include the Liqwid lending platform, Minswap DEX, and Indigo CDP. Recently, the network achieved enhanced decentralization through the Chang hard fork, which improved on-chain decision-making for ADA holders.
Charles Hoskinson continues to lead the Cardano community, actively engaging with the Donald Trump administration to promote clear crypto regulations. Additionally, collaborations with other major blockchains such as XRPL and Stellar aim to expand the Web3 ecosystem.
#Cardano whales bought over 130 million $ADA during the recent price dip! pic.twitter.com/VHg93o3WP5
— Ali (@ali_charts) November 27, 2024
The Cardano network has experienced significant growth in on-chain activities driven by whale investors. As a proof-of-stake blockchain, nearly half of its total supply, approximately 23 billion ADA, is staked to secure the ecosystem.
On-chain data from Santiment reveals that Cardano whales acquired an additional 130 million ADA, bringing their total holdings to 3.2 billion ADA units. The increased adoption of ADA by long-term holders bolsters the altcoin's long-term growth potential.