Is Cardano [ADA] nearing a significant price movement? Several signals are pointing to a potentially positive outcome in the coming days.
ADA is currently struggling to accumulate enough volume to recover from the recent dip. However, this situation may be changing as whale activity starts to pick up.
This cryptocurrency kicked off October with a significant drop in trading volume from large holders. This occurred with both inflows and outflows.
The activity of ADA's large holders has rebounded this week, suggesting that whales are once again turning their attention to this cryptocurrency.
Inflows from large holders peaked at 4.79 billion ADA in the past 24 hours, while outflows from large holders peaked at 4.72 billion USD.
The data shows that large holders have a net profit in the past 24 hours, indicating accumulation. This could suggest that sentiment may be shifting favorably towards a bullish trend, despite some recent bearish price movements.
On-chain data also reveals an increase in Longing positions over the past three days. This is further confirmation that bullish sentiment has been building up this week.
Why an ADA Breakout is Possible
The increase in Longing positions and whale activity is not a temporary phenomenon, but is likely tied to ADA's price pattern.
This cryptocurrency is moving within a wedge pattern with rising support and declining resistance.
Over the past two weeks, ADA has maintained within the rising resistance and held firm. Currently, the price is approaching the compression zone, suggesting the likelihood of a pattern breakout occurring soon.
ADA is currently trading at $0.34. The Money Flow Index (MFI) indicates that liquidation has been flowing into the cryptocurrency over the past seven days.
However, this is still not enough to trigger a significant price increase.
This is consistent with the observed net positive flows in large holder accounts and the increase in Longing positions.
The surge in whale activity at the recent lower price levels suggests a high likelihood of an upward breakout in the coming days.
ADA has the potential to generate over 20% returns if a strong breakout occurs. However, this is not guaranteed, and a downward breakout could also occur if the cryptocurrency fails to generate sufficient demand.
