Cardano’s native cryptocurrency ADA has fallen 13% in the past month to approximately $0.24. However, significant whale accumulation and technical indicators are suggesting potential for a price rebound. Large investors purchased 220 million ADA last week, valued at roughly $53 million, now controlling 37% of the circulating supply.
Cardano’s native cryptocurrency ADA has declined by 13% over the past month, trading around $0.24 with a market capitalization below $9 billion. This drop coincides with a broader bear market across the cryptocurrency sector.
Despite the recent price action, large investors appear to view current levels as a buying opportunity. Popular analyst Ali Martinez revealed that whales accumulated 220 million tokens over the last week alone.
This accumulation amounts to roughly $53 million at current rates, increasing whale holdings to nearly 13.84 billion units. Those large holdings now represent 37% of the asset’s total circulating supply.
Earlier this month, Martinez set $0.245 as a “key support level” for ADA. The analyst noted that previous instances of the price stabilizing near $0.25 led to subsequent price increases of 85% and 200%.
Another observer, X user ALTS GEMS Alets, is also optimistic about the asset’s prospects. They believe the bottom is in and envision a potential price increase above $0.60 in the coming months.
Technical analysis supports a potential bullish outlook for the cryptocurrency. ADA’s weekly Relative Strength Index (RSI) has dropped below 30, indicating the asset is technically oversold.
Recent exchange netflow data also shows outflows exceeding inflows, signaling a shift toward self-custody by investors. This movement typically reduces the immediate selling pressure on an asset.
Some market observers, however, remain skeptical about Cardano’s long-term prospects. X user gnarleyquinn argued the chain is “going to zero” in the next few years.
Their argument points to a significant decline in ADA’s market dominance, which has fallen from around 4.5% in 2021 to approximately 0.3% currently.
