After an impressive rally in November, Cardano (ADA) is currently performing disappointingly. The price reached a local high of $1.30, but is trading significantly lower at $1.10 at the time of writing. Despite this bearish performance, it is notable that whales are buying ADA en masse, possibly signaling an impending turnaround.
Bearish sentiment offers opportunities
According to the well-known crypto analyst Ali Martinez ADA’s sentiment score currently stands at -0.786, indicating pessimistic market sentiment. However, Martinez argues that this overly negative sentiment actually offers opportunities for investors. Historically, such periods are often a harbinger of price increases.
Whales and medium-sized investors are stepping in
Whales seem to be aware of this and benefit from the lower prices. In the past 24 hours, whale activity has increased significantly. No fewer than 687 transactions above $1 million were registered.
In addition, the data shows that the number of medium-sized investors has also increased slightly, by almost 2%. The combination of rising whale transactions and growing involvement from mid-market investors may indicate a shift in market sentiment.
ADA price expectations
Several analysts suggest that Cardano is currently ‘loading up’ for a possible breakout. For example, the chart points to a bull flag pattern, which is usually an omen of further price increases.
The $1.25 level is seen as crucial resistance. A break above this level could herald a further rise towards $1.63. The next price targets, according to analysts, are $1.90 and $2, which would represent an increase of almost 82% from the current price.
After that, even the all-time high (ATH) of $3.09 comes into view. To reach this level, an increase of more than 180% is required. Analysts expect ADA to surpass this value during the current bull run.
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Source: https://newsbit.nl/cardano-koers-zakt-terug-maar-whales-kopen-groot-in-voorbode-van-een-sterke-rally/
