Key Insights
- •Cardano whales added 348 million ADA in 4 days after the price dipped below $0.50.
- •ADA experienced a bounce after testing a Fair Value Gap (FVG) zone, with bulls maintaining support above $0.55.
- •Traders are closely watching the $0.62 level, as equal highs in this area could signal the next breakout.
Large holders have significantly increased their positions in Cardano following a price drop below $0.50 last week. Data from Santiment indicates that wallets holding between 100,000 and 100 million ADA accumulated a total of 348 million ADA over the past four days. This accumulation represents approximately 0.94% of the total supply, valued at around $204.3 million.
The increase in holdings is visually represented by a rise in both the total coin count and the share of supply controlled by these large wallets. This activity follows a period of price decline and suggests that key stakeholders viewed the recent price drop as an opportunity to expand their positions.
Clean Bounce After Fair Value Gap Test
Following a break of structure (BOS), Cardano's price retested a Fair Value Gap (FVG) zone situated between $0.5484 and $0.5539. This retest was met with a strong bounce, and the price is now trading near $0.5898, reflecting a 2.20% gain in the last 24 hours.
The reaction from the FVG zone marked a notable shift in short-term market momentum. As observed by market analysts, "Price tapped the FVG zone and bounced back fast." Since this bounce, ADA has consistently held above the $0.55 level, which has now established itself as a near-term support.
Traders Eye $0.62 As Next Key Level
As the price continues its upward trajectory, traders are now focusing on the next significant resistance zone located around $0.62. This price area contains equal highs from previous price action, which could potentially attract liquidity and limit further upside movement in the immediate term.
A sustained move beyond the $0.62 level would indicate a strengthening buying pressure. Conversely, a failure to break this resistance could lead to a period of consolidation. For the time being, the prevailing market structure appears to favor buyers, provided the price remains above the $0.55 support area.
Market Overview
Cardano is currently trading at $0.5898, with a 24-hour trading volume of $778 million. The price has seen a 4.12% increase over the past week. The recent accumulation by whales, coupled with a bullish technical setup, has placed ADA in a position of interest as it approaches its next key resistance level.