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Cardano (ADA) has seen a recent surge in whale activity, indicating a potential shift in market sentiment towards optimism.
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As whales accumulate 230 million ADA in just three days, the implications for ADA’s price movement could be significant, particularly if short positions are liquidated.
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“The accumulation by major holders shows a strong belief in ADA’s prospects despite previous market challenges,” said an analyst from COINOTAG.
Cardano whales have amassed 230 million ADA recently, suggesting a shift toward bullish sentiment, with price break above $0.70 crucial for future gains.
Cardano Whales Are Hopeful
Over the past 72 hours, whales holding between 10 million and 100 million ADA have accumulated over 230 million ADA, valued at over $150 million at current prices. This shift from selling and staying neutral to accumulation indicates a shift in sentiment, with whales optimistic about ADA’s potential for Q2 2025. Their recent activity signals confidence in the altcoin’s recovery despite the recent market struggles.
Whale accumulation is often a bullish indicator as these investors have significant influence over the market. The accumulation is crucial, as it provides the support needed for ADA to break through resistance levels.
Cardano Whale Holding. Source: Santiment
The liquidation map for Cardano shows that approximately $15 million in short contracts will expire as soon as ADA rises above the $0.70 level. This presents a key opportunity for the altcoin. Short-sellers may be forced to close their positions, which could lead to a short squeeze and drive the price higher.
Potential liquidation of short positions may create upward pressure, preventing further declines and allowing ADA to recover. The combination of whale accumulation and the looming liquidation of short contracts could provide Cardano with the momentum it needs to break free from its recent downtrend.
Cardano Liquidation Map. Source: Coinglass
Can ADA Price Breach $0.70?
At the time of writing, Cardano’s price is at $0.65, holding above the crucial $0.62 support level. The altcoin has struggled in recent weeks, but the whale-buying activity offers hope for recovery. A breach of the $0.70 barrier could lead to further upward movement.
Should ADA successfully break through $0.70, it could gain the necessary momentum to continue its recovery. Flipping $0.77 into support would provide an additional boost, positioning Cardano to regain recent losses and possibly challenge higher resistance levels.
Cardano Price Analysis. Source: TradingView
However, if Cardano fails to breach $0.70, the price may return to the $0.62 support level. Losing this support would invalidate the bullish outlook and send ADA to a lower level of $0.58, extending the ongoing decline.
Conclusion
The recent accumulation by Cardano whales and the potential impact of short contract liquidations could be pivotal in shaping the altcoin’s trajectory in the near term. With a critical price level at $0.70, ADA’s ability to break through could signal a significant shift in momentum, possibly heralding a new phase of growth in the market.
