ADA Price Surge Could Push Ratio Of Holders In Loss Below 55%
May 18 2024 - 7:00AM
NEWSBTC
Cardano (ADA), the proof-of-stake blockchain network known for its
smart contracts, has defied recent predictions of a fall from the
top 10 cryptocurrency rankings by market cap. In a surprising move,
ADA has instead become the top performer among major coins,
experiencing a 7% surge in the last 24 hours. This price action has
ignited discussions about ADA’s potential to revisit its 2021 glory
days, when it reached a peak of $3.10. Related Reading: Whale
Watch: Ethereum Fresh Buy Signal Sparks Speculation A Tale Of Two
Whales: Retail Accumulation Vs. Profit Taking The recent price
increase can be attributed to two key factors: a surge in buying
pressure and a potential upcoming “battle of the whales.” On-chain
data reveals that retail investors, the so-called “whaley” masses,
have been accumulating ADA aggressively, particularly between $0.48
and $0.50. This large cluster of buyers could act as a support
system if the price reaches that level. However, lurking beneath
the bullish sentiment is a potential obstacle. Data shows that only
40% of current ADA holders are in profit. A price increase to $0.49
could be particularly significant, as it could push the ratio of
holders in loss below 55%. This milestone could trigger further
buying pressure as more investors see an opportunity to move into
profit territory. Whales Return? On Volume And Market Cycle
Cardano’s price rally is also being fueled by a significant rise in
trading volume, reaching a weekly high of $461 million according to
Santiment. This surge in activity indicates growing interest in
ADA, which could propel the price further upwards. But can this
momentum be sustained? The answer might lie with the “original
whales,” the large investors who hold a significant portion of the
cryptocurrency. Interestingly, the current distribution of ADA
shares some similarities with the market conditions in 2021, when
the price hit $3. Back then, whales held roughly 6% of the total
supply. Today, that number sits at nearly 7%, suggesting a
potential return of these big players. However, analysts caution
that the success of this “whale comeback” narrative depends heavily
on the broader market cycle. If the current bull market reaches its
peak, ADA’s price growth could be restricted, hindering its ability
to revisit its all-time high. Can ADA Defy The Odds? Cardano’s
recent price surge has instilled a sense of cautious optimism in
the cryptocurrency community. While the strong buying pressure from
retail investors and the potential return of whales are positive
signs, the profitability of current holders and the unpredictable
nature of the market cycle pose challenges. Related Reading:
Filecoin On Fire: Analyst Torches Doubters With $15 Target In the
coming weeks, it will be crucial to observe whether ADA can
overcome the selling pressure at $0.49 and sustain its upward
trajectory. If trading volume continues to rise alongside the
price, and if the current bull market holds, ADA might just
surprise everyone and revisit its much-anticipated $3 mark.
Featured image from Pexels, chart from TradingView
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