- Whales bought over 40 million ADA in two days, which potentially resulted in an uptrend to $0.85.
- If the bullish outlook is to sustain, Cardano needs to stay above $0.75, but a fall below it would mean…
Over the past two days, Cardano [ADA] traders with 100 million to 1 billion coins saw over 40 million tokens collected, increasing their aggregate levels to nearly 3.11 billion.
This major build-up of holdings occurred at the time that ADA’s price skyrocketed from approximately $0.66 to above $0.80.
The escalation in whale activity appeared to push the price northward, increasing the evidence of increased demand.
Source: Santiment
Interestingly, before the surge, neither price nor whale holdings had shown meaningful movement. That quickly changed.
This sudden alignment between whale activity and price action hinted at growing confidence, though actual market confirmation was still needed to sustain momentum.
ADA escapes the channel
Cardano (ADA) price broke the descending channel barrier and made a high near $0.80 before hitting the level at $0.85.
At press time, the token hovered around $0.7944.
However, the MACD histograms started to narrow in suggesting that temporary momentum might be losing its traction. The primary support area at $0.75, respectively, coincides with the historic breakout area.
Should ADA trade above $0.75, it could show the bullish narrative and consolidate at $0.82 and then move to $0.85.
Anything can be set to happen if $0.75 breaks, a larger retracement might happen, in which case would look for a possible support zone at $0.70 in the next days.
Source: TradingView
Even though a pause occurred, the MACD lines were above 0, and therefore, demand was still greater than supply.
A close above $0.75 sustains the bullish trend for ADA; on the other hand, if ADA drops below $0.75, the breakout hypothesis would be critically challenged.
In the short run, ADA’s future will to a great extent be dependent on the performance of the altcoin at the support level in future periods.
ADA exchange liquidation map
On the derivatives side, CoinGlass data showed ADA’s last major long liquidation cluster formed around $0.789.
However, short positions exploded above this level, totaling about 40M cumulative shorts due to be triggered at $0.90.
From $0.805 to $0.875, short clusters formed mainly on the Binance and Bybit platforms.
Source: CoinGlass
If the price goes up, these shorts might initiate a domino effect of liquidations thereby increasing volatility of the market.
On the contrary, a dip below $0.775 puts longs under pressure, with positions heaped at Bybit and OKX at the bottom from $0.760.
In short, ADA’s next move will likely trigger swift liquidations either way, as large liquidity gaps flank both sides of the current range.