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Cardano (ADA) could see further upside above the $1 zone, with whale investors showing confidence in the coin through significant buying activity.
Specifically, following a minor dip below the $1 level, whales purchased over 130 million ADA, according to on-chain data shared by crypto analyst Ali Martinez in an X post on November 27.
Whale holdings have surged to 3.2 billion ADA, marking a notable vote of confidence in the decentralized finance coin.
Historically, such purchasing behavior has preceded major price movements, signaling the potential for further upside as ADA seeks to establish its valuation above $1 after years of price consolidation.
It’s worth noting that the current price momentum has helped ADA exit a prolonged consolidation phase, benefiting from the post-election rally. The token gained further traction after reports emerged that founder Charles Hoskinson might join Donald Trump’s upcoming administration to assist in creating crypto-friendly regulations.
What’s next for ADA?
As things stand, ADA is looking to regain its upward momentum after a minor drop attributed to massive profit-taking.
In this case, an analysis by trading expert Sssebu shared in an X post on November 27 stated that ADA must break above the descending trendline on its four-hour chart to confirm a trend reversal. The analyst emphasized the importance of closing above the $1.00 psychological and technical level to signal renewed buying pressure.
A successful breakout could propel ADA toward its next target of $1.25. On the downside, the analyst noted that investors should watch out for support at $0.75 and $0.65.
Following the recent price movement, there is growing anticipation that breaching the $1 resistance zone could mark the start of a significant rally, potentially culminating in new highs. To this end, Martinez noted that the coin could reach $6 by September 2025.
Meanwhile, ADA is also seeking a boost from development activity on the Cardano blockchain, with elements such as smart contracts remaining critical.
In this regard, Cardano achieved a major milestone by deploying its first zero-knowledge (ZK) smart contract on the mainnet. The transaction, executed by Input Output using Halo 2 for ZK proof verification, involved locking and unlocking funds to validate the technology.
This breakthrough marks the beginning of ZK applications on Cardano, which aim to boost privacy and scalability.
ADA price analysis
ADA was trading at $0.99 at press time, rallying over 10% in the last 24 hours. On the weekly chart, the cryptocurrency has gained nearly 20%.
Overall, the outlook for ADA appears promising in the near term, demonstrating strong bullish momentum. The coin is trading above its 50-day simple moving average (SMA) of $0.494962 and the 200-day SMA of $0.433357.
However, its 14-day relative strength index (RSI) stands at 70.65, suggesting overbought conditions and potential short-term correction.
Market sentiment remains overwhelmingly bullish, supported by a Fear & Greed Index of 75, which indicates high levels of optimism.
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