Cardano Experiences 47% Surge Driven by Whale Accumulation and Long-term Holders

In a remarkable display of market resilience, Cardano's native coin, ADA, has surged 47% over the past week, navigating through market volatility with impressive momentum.

This substantial double-digit price increase is largely attributed to increased accumulation by whale investors and a growing trend among long-term holders, indicating robust confidence in the cryptocurrency.

ADA Supply Reduction Amid Growing Whale Activity

Recent data from Santiment reveals that whale investors, those holding between 10 million and 100 million ADA coins, have significantly expanded their portfolios. During the past week alone, this category of investors has purchased an impressive 220 million ADA, translating to a value exceeding $192 million at current market rates.

As of this writing, these large investors collectively possess 12.74 billion ADA, marking their highest accumulation level in the last six months.

The accumulation by whales typically results in upward price momentum due to reduced supply circulating in the market. This trend could potentially induce FOMO (fear of missing out) among retail investors, further escalating the demand for ADA and contributing to its price appreciation.

Increasing Average Hold Times Reflect Long-term Confidence

Moreover, on-chain data highlights a noteworthy increase in the average holding period for ADA among investors, which has surged by 78% over the past week according to IntoTheBlock. This trend signifies a shift towards long-term investment strategies as opposed to frequent trading aimed at quick profits.

The extended holding period indicates diminished selling pressure within the market and showcases a strong conviction among ADA holders, who seem inclined to retain their assets.

Can ADA Break Through $0.94 for a New Three-Month High?

On the daily chart, ADA's rising on-balance volume (OBV), currently at 52.56 billion and up by 2% since March 1, reinforces the surge in demand. This indicator, which measures buying and selling pressure by tallying volume on up days and deducting it on down days, suggests strong buying interest and indicates that the price increase is likely supported by robust demand.

If ADA continues on this upward trajectory, it stands a strong possibility of surpassing the resistance level of $0.94, potentially reaching a new three-month high around $1.32.

Conversely, if demand weakens, the price might experience a downturn, possibly hitting levels as low as $0.72. Investors should remain vigilant as market dynamics continue to evolve.