• Cardano trades near key $0.94 support; recovery above $1 is anticipated.
• Whales accumulate 60M ADA, signalling market confidence and bullish sentiment.

Cardano (ADA) has experienced a volatile week. Its price dipped to a low of $0.91306, marking a 6% drop in the past 24 hours. Despite this downturn, trading volume surged by 25%, indicating increased market activity. Over the past month, ADA has declined by 7%, but a 15% rally in the past week suggests a bullish outlook, possibly driven by whale accumulation.

On-chain data from Santiment shows that ADA whales, holding between 10 million and 100 million tokens, have collectively bought 60 million ADA, amounting to over $58 million, in the last seven days. This group now holds 12.21 billion ADA, the highest monthly level for their holdings. Such significant accumulation often signals market confidence, potentially attracts retail investors, and can create scarcity, thereby driving up the value.

Meanwhile, adding to the bullish indicators is ADA’s Market Value to Realized Value (MVRV) ratio, which remains negative across multiple moving averages. This metric suggests that ADA is currently undervalued, presenting a potential buying opportunity for investors anticipating a price recovery.

What is Ahead For ADA?

ADA is currently trading near a key support level at $0.94. If whale activity continues, this level might serve as a solid foundation for the price to climb back above $1. However, a breach below this support could see ADA drop to $0.85, putting pressure on the bullish outlook.

Moreover, further supporting optimism are rising scarcity metrics, such as the Stock-to-Flow Ratio (SFR), which now stands at 291.37, along with positive funding rates on platforms like Binance and DyDx. These indicators suggest a strong investor demand for long positions, reflecting expectations of an imminent price rebound.

Despite the recent pullback, the market sentiment remains bullish, with investors eyeing a recovery towards $1.11. However, if bearish momentum persists, ADA could test lower support levels around $0.80 before potentially resuming an uptrend.

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