After a month-long movement, Cardano is now bouncing back closer to the $1 mark. Having depreciated significantly over the past few months, ADA is trading at $0.905. Even so, optimism remains high, considered as the altcoin has recovered 12.87% in the past four days.
Cardano candle turns green
In addition to the recovery, the price indicators also show bullish signals. Since January, the Relative Strength Index has been at its highest level, with the MACD also showing an uptrend.
Alas, there are always other signals for every bullish signal that negate the chance of something good happening.
During the previous rally on Feb. 28, when ADA rallied 12.5%, the uptrend didn’t last even a day. As soon as it depletes, the alt price begins to drop on the chart. There are legitimate concerns that the same thing could happen this time as well.
However, a unique and unseen aspect of this rally is the behavior of investors. Fueled by hopes of a recovery, ADA holders have been very active, with today’s trading volume hitting $55.43 billion. At the same time, 95% of this is initiated by whales – $55.12 billion in total.
This shows that 3.47 million ADA holders account for 82% of the total addresses holding 0 – 1k ADA cumulative control of only 0.93% of the total supply.
Cardano balance distribution | Source: Intotheblock
In contrast, whales account for 4.8% (214,000) of all addresses responsible for the movement of nearly 85% of the supply.
Simply put, this is not an investor-driven rally. It is a whale-triggered rally that makes hitting $1 both possible and uncertain.
Now, while overall network performance is indicative of the former, a 400% increase in volatility over the past 24 hours indicates the latter.
However, one thing is for sure – When ADA makes it above $1, it will struggle at the actual resistance of $1.02. That level has not been tested for over a month now. It acted as a strong support level in early January.
So if Cardano can close above it, we will probably see more from retail investors than whales.
Read more:
- Whales Appear To Be Bargain-Hunting Cardano (ADA) As The Programmable Blockchain’s DeFi Protocols See Rapid Growth
- Cardano Staking Continues To Surpass Ethereum Due To Increasing Demand For ADA