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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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