Is ADA Price Preparing for Another Rally?

TL;DR

ADA whales have been on a buying spree of late, indicating potential near-term price increases. Increased network growth and a 7% increase in large transactions support ADA’s recovery, with 66% of investors now in profit, compared to 87.6% just a few months ago. How far can the ADA go?

Cardano’s ADA witnessed a 180% price increase last month, briefly crossing $1 and currently hovering around it. According to some analysts and developments, the asset could rise much more impressively in the near future.

ADA price, Source: CoinGecko

One factor that suggests this upward movement is whale activity. Popular X user Ali Martinez claimed that large investors had bought over 130 million tokens (worth around $130 million) during the recent price drop.

The effort reduces the number of coins available on the open market, creating scarcity, and could increase valuation (assuming demand stays the same or increases).

Additionally, the actions of the whales could be interpreted as a sign of trust by smaller players, prompting them to join the ecosystem.

User X Sssebi speculated that the ADA could be “forming an inverse head and shoulders pattern,” which could be followed by a price rally above $1.05 as early as this week.

Jake Gagain and Dan Gambardello were even more optimistic. The former promised to delete his X account if ADA does not exceed $5 this bull cycle.

Gambardello described the current $1 price as an area of ​​”consolidation and redistribution.” “Once this phase is over, Cardano can focus on $5 and $10,” he predicted.

In the meantime, we recently released a video with some of the major developments surrounding Cardano. Check it out here:

Bullish metrics

Some key indicators of the chain also hint at an incoming rally. According to IntoTheBlock, the network’s net growth (a momentum signal that “gives a pulse of the actual growth of the token’s underlying network”) is up 0.33% on a daily basis.

Large transactions (the number of transactions that exceed $100,000) are also on the rise, rising almost 7% in the last 24 hours.

Meanwhile, the recent resurgence in ADA prices has benefited many of its investors. About 66% of its holders are currently sitting on some paper profits, while only 27% remain underwater.

The picture looked much worse in early August of this year, when almost no one had ADA profitable. At the same time, 87.6% were in the red.

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