Cardano (ADA) price started the week positively with a 5% bounce after holders staked $30 million ADA coins. The bulls have since suffered another setback in reclaiming $0.30 territory. However, two vital on-chain indicators show green signals that could offer quick relief.
On September 1, Cardano (ADA) price dropped toward the $0.25 range as the bears rebuffed another attempt at the $0.30. A cohort of price-savvy whales and strategic traders could combine to flip the tide in the coming weeks.
Cardano Whales Have Invested $65 million In the Last Six Weeks
A strategic group of Cardano whales holding 1 million to 10 million coins seem to have taken a bullish cue from Ripple’s (XRP) victory over the US Securities and Exchange Commission (SEC). Historical data shows that they had previously aligned their trading patterns to ADA price trends.
However, since US District Judge Analisa Torres ruled that XRP is “not a security,” the whales began to stack up, ignoring the ADA price downtrend. Between July 14 and September 1, the whales added 240 million ADA coins to their cumulative balances.
With ADA currently trading at $0.26, this means the whales spent approximately $62.4 million on new inflows over the last six weeks. This signals that the whales are confident of a positive outcome regarding Caardano’s ongoing regulatory squabbles.
Notably, whale investors are known to be highly influential within a blockchain ecosystem. Hence, it’s only a matter of time before Cardano retail investors also pick up on the bullish disposition.
Strategic Traders Could Echo the Whales’ Positive Disposition
Recent data from Exchange Order Books, show that strategic traders could soon mirror the whales’ buying trend. As shown below, bullish traders have placed active orders to buy 75 million ADA. This is considerably higher than the 45 million ADA coins currently up for sale.
The Exchange On-chain Market Depth chart shows the volume of active orders Cardano traders placed across recognized crypto exchanges.
The chart above depicts that the current market demand for Cardano exceeds supply by more than 30 million coins. This is a vital signal that the strategic traders could complement the whale’s efforts.
If that happens, they could make another audacious attempt at reclaiming $0.30.
ADA Price Prediction: The $0.28 Resistance Remains an Obstacle
The indicators analyzed above suggest the mounting buying pressure could spark another price rally toward the $0.30 territory.
The In/Out of Money Around Price data depicts the entry price distribution of the current Cardano holders, which also validates this thesis.
It, however, highlights that the Cardano price uptick will likely face considerable resistance around the $0.28 territory. As shown below, the 484,000 holders had bought 5.44 billion ADA at the minimum price of $0.28. If they close their positions, it could trigger an early bearish reversal.
But if the bulls can push past that resistance, ADA price could promptly reclaim $0.30 as predicted.
Conversely, the bears could invalidate that optimistic Cardano price prediction if it drops below $0.25. However, 202,000 addresses had bought 1.8 billion ADA coins at the minimum price of $0.25. But if the Cardano whales keep buying, the bears could have trouble attempting to break down that support area.
Although unlikely, if that support level does not hold, Cardano’s price could eventually break below $0.24 for the first time in 2023. With very little resistance to prop the price up – it could signal more downside for ADA.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.