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Cardano (ADA) Price Rally Not Over Yet —Here’s Why 

By:
Ibrahim Ajibade
Updated: Jan 4, 2024, 09:15 UTC

Crypto whales were spotted acquiring 100 million ADA (~$56M) while Cardano prices plunged over the last 24 hours. Will this trigger a rebound above $0.60?

Cardano (ADA) Price

In this article:

Key Insights:

  • Cardano (ADA) price has swiftly rebounded above $0.56 as of Thursday morning in the European trading hours,
  • ADA price had initially tumbled to a 3-week low of $0.50 on Wednesday, Jan 3. 
  • A strategic group of crypto whales was spotted acquiring 100 million ADA (~$56 million) while Cardano prices plunged over the last 24 hours. 

Cardano (ADA) price plunged to a 3-week low of $0.50 on Wednesday, Jan 3 amid a frenetic wave of liquidations in the crypto derivatives markets.  On-chain analysis examines how a savvy group of crypto whales buying the dip contributed to ADA’s swift 12% rebound above $0.56 within 24 hours. 

Do the bullish whales have enough in the tank to propel Cardano’s price back above the $0.60 territory? 

Cardano Whales Spent Over $50M Buying the Dip on Wednesday 

Cardano price nosedived on the global crypto market capitalization shrank by $103 billion during Wednesday’s pull-back. The widespread crypto market liquidations appears to have been exacerbated by bearish reports surrounding the much-anticipated Spot Bitcoin ETF approval. 

ADA price traded as low $0.50 for the first time since Dec 9, down 26% from its local top of $0.68 recorded on Dec 28. However, on-chain data trail has revealed that a strategic group of crypto whales swooped in to buy Cardano during the market dip. 

While Cardano prices dipped toward $0.50, the crypto whales holding balances of 10 million to 100 million ADA swung into action. As depicted below, the whales held a total of 12.37 billion ADA in their cumulative balances as of Jan 2.

After spending the last 24 hours buying 100 million coins during dip, they now have 12.47 billon in their holdings at press time on Jan 4. 

Cardano (ADA) Whales Wallet Balances vs. Price | Source: Santiment
Cardano (ADA) Whales Wallet Balances vs. Price | Source: Santiment

The Whales Wallet Balance metric tracks real-time changes in the balances held by corporate entities and high networth investors. The newly-acquired 100 million ADA are worth approximately $56 million, when valued at the current Cardano price of $0.56.

Typically, such a large capital inflow often triggers a significant shift in the market dynamics. When it occurs during a price downtrend as observed above it indicates that the whales are positioned for an imminent price rebound. 

Given that the historical buy/sell patterns of the whale cohort has been closely correlated to previous ADA price upswings, strategic retail traders could also be incentivized to join the buying wave. 

If this scenario plays out the Cardano price rally may not be over yet. ADA price could rise toward the $0.60 territory again in the weeks ahead.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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