Cardano is preparing for a surge in price as whales seek to accumulate large amounts of ADA at discounted prices. Crypto analyst Ali has identified a promising trend in the altcoin that suggests an imminent price rally.
Cardano (ADA) is on the verge of a price rally, as on-chain data reveals renewed interest from whales in the 9th-ranked cryptocurrency. One factor contributing to this could be the recent price drop, which has attracted investors looking to reinvest. The current discount prices present a smart opportunity for investors to make a quick profit.
As of now, ADA is trading at $0.54, following a 5% drop in the last 24 hours. This extends the altcoin’s weekly loss to nearly 13%.
While retail investors often panic after a significant price change, leading to further losses, it is common for large investors to take advantage of low prices to accumulate assets before the next breakout.
Data shared by crypto analyst Ali shows that large accounts have been consistently accumulating substantial amounts of ADA. These large accounts hold between 100K and 10M ADA. Recognizing the opportunity, these accounts have increased their accumulation from 5.85 billion to as high as 5.77 billion. Notably, this accumulation has occurred as ADA prices have fallen from $0.664 to the current levels of around $0.54.
“In the last two weeks, #Cardano whales bought over 14 million $ADA, worth around $8.40 million!” notes the analyst. Earlier this week, CNF reported on record volumes for the altcoin, with data from Coinglass showing a 49.07% increase in turnover, reaching a staggering $631.41 million.
The involvement of whales not only indicates positive sentiments towards the coin but also means that there are fewer coins in circulation, which can have a positive impact on prices. The analyst further noted that the recorded accumulation in the third quarter of 2023 mirrored that of the 2018-2020 phase. He predicts that this trend will continue until July 2024, suggesting that ADA could break out in December.
Late last year, the token reached highs of $0.67, facing strong resistance. If the altcoin can maintain an upward trajectory supported by whales, it could easily surpass $0.80 and potentially reach above the $1 mark. Looking ahead, investors are optimistic that the altcoin could revisit its all-time high of $3.09 achieved two years ago.
As reported by CNF, the altcoin has been compared to Amazon stock. Crypto analyst Gambardello likens the ADA market conditions to the early years of Amazon, where the focus was on building the ultimate platform with the belief that market success would follow. This similarity can be seen in Cardano’s approach.
From his perspective, acquiring ADA now is like buying AMZN back in 2001 when it was $0.30. Currently, AMZN is trading at $144.
In 1999, Amazon Stock reached an all-time high of $5.25! In 2001, Amazon dropped to $0.30! Sound familiar? Purchasing $ADA in 2023 will be seen as equivalent to buying Amazon stock in 2001, but with more potential because $ADA has unlimited utility! Cardano!