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Will Whale Accumulations Prompt a Cardano (ADA) Price Recovery? Eyes Set on $1

source-logo  coinedition.com 29 February 2024 14:37, UTC

Cardano (ADA) has recently drawn attention due to its market behavior, marked by a reducing trend of ADA holders. This week, on-chain data has revealed many lost transactions within the Cardano network, overshadowing the profitable ones, especially when juxtaposed against giants like Ethereum and Bitcoin. Despite this, nearly 78% of Cardano wallets still boast unrealized gains, painting a complex picture of the asset’s current state.

Cardano Holders Face Challenges

Recent analyses have shown that Cardano’s on-chain metrics indicate a challenging period for its holders. A 102.38 million in losses were realized over the past week, hinting at a potential sell-off phase. However, the silver lining remains as most ADA wallets are still in the green regarding unrealized gains, suggesting resilience within the Cardano community.

#Cardano fam, your weekly update.

In 1 week -> 1.6 MILLION transactions!! 👀👀

Spooky 👻 @Cardano $ADA pic.twitter.com/uPgylxlCp0

— Chris O (@TheOCcryptobro) February 23, 2024

Whale activities have also been a point of interest, with transactions exceeding $100,000 witnessing a sharp increase. This trend often correlates with significant movements in Cardano’s price, hinting at strategic accumulations by large-scale investors during price dips. Historically, such patterns have preceded phases of price recovery, suggesting that despite the current sell-off signs, there could be a bullish outlook on the horizon for ADA.

Comparative Analysis of Ethereum and Bitcoin

The situation, however, becomes more intriguing when Cardano’s on-chain activities are compared with Ethereum’s and Bitcoin’s. Significantly, Cardano’s higher rate of loss transactions starkly contrasts with the profitable transfers predominant on the other two networks. As a result, this divergence underscores the unique challenges within the Cardano ecosystem, particularly in a week that has seen its holders bear more losses than gains.

📈 This week, the #Ethereum network is seeing its highest ratio of profitable #onchain transfers since November, with a 2.3 to 1 ratio of coins moving at a profit vs. loss. Meanwhile, #Bitcoin's ratio is also quite high at 1.8 to 1. #Cardano is one of the few seeing more loss… pic.twitter.com/wLpCEpt7bZ

— Santiment (@santimentfeed) February 27, 2024

Concurrently, the previous price resistance level for ADA stood at $0.63, with analysts suggesting that surpassing this threshold could pave the way to $0.75 without significant hurdles. This outlook, moreover, is buoyed by the fact that a substantial portion of Cardano wallets are still profitable, hinting at underlying strength that could support a price rebound.

However, with the bullish momentum nullifying the bearish rally in the last 24 hours, the resistance level was breached, soaring ADA to an intra-day high of $0.6994 before facing resistance, as per CoinStats data. ADA was trading at $0.6927 at press time, a 9.87% surge from the support level. Concurrently, its market capitalization and 24-hour trading volume surged by 9.27% and 158.85%, respectively, to $24,570,957,787 and $1,770,331,862.

ADA/USD 24-hour price chart (source: CoinStats)

Expert Insights and Forecasts

Amid these developments, Dan Gambardello, a prominent figure in the Cardano community, has voiced optimistic projections for ADA. His forecasts suggest a potential surge past the $1 mark, buoyed by the minimal resistance ahead. Such predictions align with Cardano’s historical price movements, which have seen its value swing dramatically since its inception.

Cardano won’t be below $1 much longer.

— Dan Gambardello (@cryptorecruitr) February 27, 2024

Gambardello’s perspective, however, also introduces a note of caution, particularly regarding the timing of ADA’s ascent concerning Bitcoin’s upcoming halving event. While bullish in the long term, he tempers immediate expectations, suggesting that ADA’s climb to $1 might not align with the halving timeline.

Further supplementing Cardano’s prospects is its ongoing commitment to ecosystem development. The blockchain’s recent announcement of funding 300 projects through Project Catalyst Fund 11 highlights its dedication to fostering innovation and real-world applications on its platform. Such initiatives are pivotal for long-term growth and could significantly influence Cardano’s market position.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.