thecryptobasic.com
Cardano whales are back in the game, leveraging the latest dip to acquire the ninth-largest cryptocurrency by market cap at an appealing price.
After sustainably trading above $1 for fourteen consecutive days, Cardano recently retested prices below the psychological level. For context, ADA fell to $0.9100 on December 9 following Bitcoin’s drop below $94,000.
Meanwhile, Cardano quickly rebounded, closing the day at $1.0034. Although the asset tested lower prices again the next day, it closed bullish, spurring an uptrend to $1.1819.
Cardano Whales Buy the Dip
Amid the bearish spell, Cardano whales are buying the dip. Data shows that the balance of large ADA holders has increased substantially since the asset tested lower prices.
Market analyst Ali Martinez shared a tweet on Wednesday showing an accumulation trend among Cardano whales following the dip. The expert noted that the whales who had been taking profit when Cardano grew to $1.33 are back to buying.
Per the commentary, whales holding between 10 million and 100 million ADA have bought 160 million ADA since the correction. Notably, their balance bounced from the December 12 lows of under 12 billion ADA to 12.16 billion ADA in less than a week.
Meanwhile, the massive accumulation followed a spike in large transactions in the Cardano network. Martinez disclosed in an earlier commentary that two days ago, whales carried out about 687 transactions exceeding $1 million, which turned out to be large holders buying the dip.
Similar Accumulation Trends
It bears mentioning that accumulation in this manner has prevailed among Cardano whales in the past. For context, large ADA holders copped $110 million worth of Cardano earlier in the year in anticipation of an imminent price explosion.
This trend also followed a substantial accrual in November. Late in the month, whales seized a correction opportunity to stack 130 million ADA, boosting positive sentiments around the Cardano ecosystem.
What’s Next for Cardano
In the meantime, sentiments around the Cardano ecosystem remain bearish. The investor disposition flipped negative on December 18, dropping to a weighted sentiment of -0.786.
Furthermore, analysis confirms the prevailing downward momentum. The MACD indicator shows a mildly bearish trend, with the MACD line and signal line trending at -0.0111 and -0.0067, respectively.
Meanwhile, the relative strength index (RSI) currently sits at 40.15, a zone that is neither overbought nor oversold. Analysis shows that the continuation of this trend could push Cardano below $1 again.
Nonetheless, Cardano remains bullish long-term, with analysts speculating a surge to $10 by next year. At press time, ADA trades at $1.019, down 3.14% in the past 24 hours.