Cardano Whales’ $142M Inflows Set to Trigger ADA Price Rebound 

Insights:

• Cardano (ADA) price slid toward the $0.60 support level on Sunday, Dec 31 as top-ranking megacap altcoins suffered a week-long pull-back. 
• Crypto whales were spotted buying 237.31 million ADA (~$142M) over the weekend dropped. 
• Having dropped 11% from the 2023 peak recorded on Friday, ADA historical accumulation trends suggest that a bullish reversal could be imminent. 

Cardano (ADA) price has pulled back to $0.60 on Sunday evening after racing to a 2023 peak of $0.68 on Dec 28. On-chain data trail reveals that crypto whales have been doubling down on their bullish amid the 11% correction. 

Will the bullish whales’ multi-million dollar inflows over the weekend be sufficient to fund an instant Cardano price rebound? 

Cardano Whales Spent $142 Million Buying the Dip over the Weekend 

Cardano price nosedived 11% from $0.68 to $0.60 between Dec 28 and Dec 31. With Solana (SOL) and Avalanche (AVAX) having recorded sizeable downsizing over the past week, the ADA price correction emphasized an ongoing tepid theme surrounding the megacap Layer-1 altcoins sector. 

But interestingly, on-chain data trail reveals crypto whale investors on the Cardano ecosystem have been doubling down on their bullish positions.

Cardano Large Holder Netflow has remained in positive figures amid the price downtrend that ensued over the weekend. As depicted in the IntoTheBlock chart below, the last time Dec 26 was the last time Cardano Large Holder Netflow swung into negative values. 

Between Dec 27 and Dec 31, the whales have increased their positions by 237.31 million ADA. 

The Large Holder Netflow metric  measures the daily variance between the outflows and inflows from whale wallets holding at least 0.1% of a cryptocurrency’s total circulation supply.

A prolonged buying trend among corporate entities and high networth investors often puts upward pressure on a cryptocurrency’s price. 

Valued at the current Cardano price of $0.60, the whales’ newly-acquired 237.31 million ADA coins are worth $142 millon. 

Firstly, when crypto whales buy large quantities of coins during a price downtrend, as observed above, it suggests that they’re buying the dip in anticipation of an imminent rebound.  It also provides much-need liquidity, which enables panic sellers execute ongoing trades at without causing large price downswings.

More importantly, the bullish momentum among whales could now encourage other stakeholders and retail investors in the ecosystem to take on a positive disposition as well. 

If this scenario plays, Cardano price will likely hold-up above the $0.60 support, and possibly launch another attempt at the $0.70 area. 

Cardano Price Forecast: Can ADA Stay Above $0.60? 

From an on-chain analysis perspective, Cardano looks set to defend the $0.60 support level, thanks to the whales’ ongoing buying trend.

However, considering the overall tepid sentiment surrounding Layer-1 alts, Cardano bulls could struggle to reclaim $0.65 area. 

The Global In/Out of the Money Around Price chart which groups current ADA holders according to their entry prices also affirms this forecast. 

It shows that, 111,270 current holder had acquired 2.36 billion ADA coins at the maximum price of $0.63. Without a major bullish conviction across the markets, these holders could seek exits as ADA price edges closer to their break-even point in the days ahead. 

However, a decisive breakout above that major resisintance at $0.60 could trigger a major upswing toward $0.70. 

On the downside, the bears could remain in the driving seat if ADA price loses the $0.58 support level. But as as seen above the 65,000 holders had acquired 1.03 billion ADA at the minimum price of $0.59. To avoid slipping into loss positions those holders could offer significant support and possibly trigger a rebound.