Cardano (ADA) Surges 14% on Whale Accumulation…Breaking $0.196 is a Watershed Moment

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Cardano (ADA) has broken above its uptrend line, fueled by whale investors buying at low prices and an expansion of bullish positions in the derivatives market. A new forecast suggests further upside is possible if it surpasses the resistance zone of $0.195-$0.196.

According to investment specialized media FXStreet on August 3 (local time), Cardano traded around $0.187 on Monday after surging over 14% last week. The price was above the uptrend line and the 50-day Exponential Moving Average (EMA), with whale accumulation and increasing open interest supporting further upside potential.

Santiment's supply distribution data shows that wallets holding 1 million to 10 million ADA and wallets holding 10 million to 100 million ADA have accumulated a total of 250 million ADA since July 29. Large holders have utilized the recent price decline as a buying opportunity, indicating sustained long-term demand for Cardano.

Derivatives indicators also supported the bullish outlook. According to Coinglass, ADA open interest across exchanges has been increasing since July 30, reaching 2.7 billion ADA on Monday. The increase in open interest alongside a price rise signals that new long positions are entering the market. The open interest-weighted funding rate also turned positive on July 28 and rose to 0.0093%, reflecting a bullish sentiment where long position holders pay costs to short position holders.

Technically, ADA remained above its 50-day line at $0.174 and its reclaimed uptrend line at $0.184, but its ascent was capped below the 100-day line at $0.196 and the 200-day line at $0.261. The Relative Strength Index (RSI) was at 63, leaning bullish without entering the overbought zone, and the Moving Average Convergence Divergence (MACD) also registered positive, indicating improving momentum.

Short-term resistance levels are the 38.2% Fibonacci retracement price at $0.195 and the 100-day line at $0.196. A breakthrough of these levels could open the possibility of a rise to $0.213 and $0.231, potentially reaching $0.236-$0.245. Conversely, if $0.184 fails, it could test the 50-day line at $0.174 and the 23.6% Fibonacci retracement price at $0.173, with a risk of falling to $0.150 if the correction deepens.

*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.*