Cardano's Price Remains in a Tight Range
This week, Cardano's (ADA) price traded sideways, hovering between the resistance level at $1.02 and support at $0.96. Despite this muted market movement, blockchain data indicates the emergence of a buy signal that has captured the attention of large investors, known as whales.
Whales Invest as ADA Flashes a Buy Signal
One of the key market indicators, the Market Value to Realized Value (MVRV) ratio, highlights whether an asset is overvalued or undervalued. For Cardano, the current 7-day and 30-day MVRV ratios stand at -2.88% and -0.98%, suggesting that ADA is likely undervalued.
When the MVRV ratio is negative, as it is for ADA, it indicates that the asset's market value is below its historical purchase price, signaling a potential opportunity for investors to buy low and sell high.
This signal has attracted whales, who have begun accumulating significant amounts of ADA. According to data from Santiment, whale addresses holding between 10 million and 100 million ADA have purchased an astonishing $140 million worth of tokens over the past week.
Whale Confidence Signals Potential Price Growth
Such large-scale whale activity often indicates increased confidence in the near-term and short-term prospects of the asset. If retail investors follow this trend, Cardano's price could experience significant upward momentum in the coming weeks.
ADA Price Forecast: Can Whale Accumulation Drive Momentum?
As of now, ADA is trading at $0.99. If the whale accumulation trend continues, the price could break the resistance at $1.02 and climb toward $1.08.
However, if whales slow down their accumulation and selling pressure increases, ADA could fall below the support at $0.96 and drop further to $0.94.
Conclusion
The recent activity of major investors demonstrates a growing confidence in Cardano's future. The key factor will be whether the accumulation trend continues or selling pressure rises. For now, ADA is at a pivotal point with the potential for growth, but traders should closely monitor the support and resistance levels.
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