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Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, is hinting at significant activity over the past 48 hours. According to Ali, whales have bought over 20 million Cardano during this period.
Although the exact reason behind these moves remains unknown, a few potential explanations might be likely.
The recent progress on Cardano’s decentralized governance framework, including CIP-1694, may have boosted investor sentiment about the project's long-term viability.
Whales have bought over 20 million #Cardano $ADA in the past 48 hours! pic.twitter.com/ofFBS3wec5
— Ali (@ali_charts) December 29, 2024
On Dec. 21, Intersect, a member-based organization for the Cardano ecosystem, announced that the Plomin hard fork governance action on mainnet has been submitted for ratification. The Plomin upgrade will unlock Cardano’s final on-chain governance features.
This action marks the end of the beginning for on-chain governance. If enacted, it will enable full governance as defined in CIP-1694 to mainnet, ending the technical bootstrapping phase. Given this, ratification and enactment of the Plomin hard fork governance action on mainnet could happen following any epoch boundary between Jan. 4 and 29, 2025.
As the year 2024 comes to a close, expectations remain in the final days of a historic year for most digital assets. This might be encouraging whales to accumulate ADA in anticipation of a price surge. Also, with ADA’s price trading below $1, whales might see this as an opportunity to accumulate at a discount.
ADA price action
The broader cryptocurrency market has been showing signs of recovery, with many altcoins turning green just two days before the end of the year 2024. At the time of writing, ADA was up 1.75% in the last 24 hours to $0.887.
Cardano recovered from a low of $0.85 in Friday's session, following two days of losses. The rebound is met with resistance around $0.91, ahead of the daily SMA 50 at $0.949.
If ADA advances beyond these two key levels, it might aim for $1, exiting its current range to begin a fresh uptrend.
A rally above $1 could trap bears, paving the way for a short-covering rally to $1.20. On the other hand, if the ADA price declines and falls below $0.76, it might signal the start of a downward move. ADA may then fall toward $0.50.