Large holders of Cardano increase their ADA holdings by 120 million in a fortnight

Cardano (ADA) has recently become a topic of interest due to a notable surge in accumulation by large investors, commonly referred to as whales. These financial heavyweights have acquired a substantial 120 million ADA in just the past fortnight. This development, highlighted by esteemed crypto analyst Ali, signals a significant shift in investor sentiment, with major players positioning themselves for a possible uptick in price.

Ali’s analysis indicates that this recent spree of buying is part of a broader trend of strategic accumulation by wealthy holders. These investors are not only making purchases during price drops but are also actively consolidating their positions amid the current price stabilization. This behavior suggests a growing belief in ADA’s long-term value proposition, as whales typically hoard assets when anticipations of future price appreciation brew.

On-chain analytics platforms, such as IntoTheBlock, corroborate Ali’s discoveries. Wallets holding between 1 million and 10 million ADA have displayed a noticeable surge in holdings since late June. This surge in accumulation aligns with a sharp decrease in ADA stored on exchanges, revealing that whales are transferring their assets into long-term cold storage, signaling another bullish indication.

In terms of technicals, ADA is presently trading within a narrow range of $0.66 to $0.74, with $0.70 standing as a pivotal resistance level. Analysts point out that this range has curbed multiple recent rally attempts, making it a crucial area to monitor. A clear breakout beyond this level could potentially pave the way for a push towards $0.83 and conceivably $0.91, levels that accord with historical Fibonacci retracement targets.

While the Relative Strength Index (RSI) remains neutral, it has displayed bullish divergence on lower timeframes. Furthermore, escalating volume and positive funding rates indicate a burgeoning market interest. If this price movement is confirmed by strong on-chain activity, ADA might soon break free from the sideways trajectory it has largely followed in the second quarter.

Apart from technicals, Cardano’s expanding ecosystem is another draw for whales’ attention. Developments like Cardinal, aiming to integrate Bitcoin liquidity into Cardano’s DeFi landscape, have bolstered the blockchain’s allure. Additionally, the surging Total Value Locked (TVL) on Cardano-based platforms, currently hovering close to all-time peaks, showcases rising user and developer engagement.

There is also a growing optimism surrounding the imminent possibility of a Cardano Spot ETF, particularly following the approval of multiple Bitcoin and Ethereum ETFs in global markets. Analysts speculate that ADA could be among the next wave of cryptocurrencies to obtain institutional product accessibility, potentially elucidating the whales’ strategic moves.

Despite encountering formidable obstacles at critical price levels, the magnitude of recent whale accumulation demands attention. Ali’s insight is reinforced by compelling on-chain data. Should market momentum harmonize with the prevailing buying trend, ADA might be primed for a significant breakout in the weeks ahead.

Investors should closely monitor ADA’s ability to maintain levels above $0.70 and the continuance of whale activity at this magnitude. Should both circumstances hold, Cardano could be on the verge of entering a fresh phase in its market cycle, characterized by institutional accumulation and broader price expansion.