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▲ Cardano (ADA)/AI-generated image ©
While market attention is focused on major cryptocurrencies like the leading asset Bitcoin (BTC) and XRP (Ripple), the smart contract platform Cardano (ADA) is generating strong upward momentum, fueled by intensive accumulation by whales and positive indicators in the derivatives market, significantly raising investor expectations.
According to the investment media outlet FXStreet on March 16 (local time), Cardano has maintained a solid trend above $0.27 after surging over 8% last week, breaking through a long-term downtrend line. Examining supply distribution data from the on-chain data analytics platform Santiment reveals that certain whale wallets have seized the opportunity of recent price corrections to heavily accumulate ADA, providing strong support for a bullish outlook. Specifically, a group of whales holding between 1 million and 10 million ADA tokens aggressively absorbed a total of 60 million tokens from Friday to Monday.
Conversely, during the same period, a larger group of whales holding between 10 million and 100 million tokens was observed to have capitulated, dumping 50 million units onto the market. This indicates that when larger whales panic-sell and shock the market, relatively smaller whales shrewdly recognize this as an excellent opportunity to accumulate assets at discounted prices and act swiftly.
In addition to the positive movements by investors, data from the derivatives market also strongly supports a bullish bias. According to Coinglass data, the Open Interest for ADA futures on the Binance exchange reached $104.63 million as of Monday, showing a consistent upward trend since early March. This increase in open interest indicates new capital inflow into the market and aggressive buying pressure. Furthermore, funding rates turned positive on Sunday and surged to 0.009% on Monday, a phenomenon where long positions pay short positions, which has historically accompanied sharp price increases.
From a technical analysis perspective, clear signs of a full-fledged rebound are also detected. The price has broken through the downtrend resistance line near $0.25, perfectly converting that area into a medium-term support base. The Relative Strength Index (RSI) on the daily chart stands at 53, maintaining stable momentum above the midline, and the Moving Average Convergence Divergence (MACD) is also firmly holding above its signal line and zero line, expanding its positive histogram, suggesting that buyers are in control of the market.
However, there are still hurdles to overcome for a full-scale bull run. The price remains below the 50-day and 100-day Exponential Moving Averages, which are clustered between $0.29 and $0.35. If it surpasses the immediate resistance level of $0.29 and establishes a daily close above the 100-day moving average at $0.34, the path to the $0.40 area will be wide open. Conversely, in case of a decline, $0.27 will act as the first line of defense, and if $0.25 is breached, the initial bullish sentiment could cool down significantly, with a risk of falling to $0.24.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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