The ongoing recovery in the altcoin market has propelled Cardano (ADA) to exhibit a notable upward momentum. As of October 19, Cardano’s Total Value Locked (TVL) stood at around $207 million, and since then, the ADA price has surged by approximately 23 percent, trading near 30 cents as of Tuesday. A substantial spike of over 51 percent in the daily average trading volume to about $229 million over the past 24 hours signifies growing demand, particularly among institutional investors aiming to diversify their digital asset holdings.
Cardano Price Action Analysis:
The bullish trend for Cardano began unfolding at the start of the year and has been gaining traction. Market data from TradingView reveals that on a weekly time frame, ADA’s price demonstrated a triple bottom pattern, accompanied by a bullish divergence on the Relative Strength Index (RSI), which remained above 50 on Tuesday. For a favorable near-term outlook, it is imperative for ADA’s price to rally beyond the 200-day Moving Average (MA) and sustain above it. The ADA bulls have set a target of 45 cents as the crucial next level to breach, affirming a broader bullish sentiment.
Whale Accumulation:
A recent on-chain analysis by market intelligence platform Santiment showcased a significant accumulation spree by large ADA holders, referred to as sharks and whales, who hold between 100k to 10 million ADA units. Over the last fortnight, these entities have amassed an additional 43.71 million ADA coins, bringing their total holdings to about 33.71 percent of ADA’s total supply. Remarkably, Santiment’s analysis also underlined that Monday witnessed the highest level of activity from older wallets transferring ADA since April 2022, indicating a potential shift in market dynamics.
In summary, Cardano is riding a wave of positive momentum amid the broader altcoin recovery, with notable price appreciation and heightened trading activity. The significant accumulation by large holders underscores the growing confidence and a potential bullish outlook for ADA moving forward.
