- ADA displayed several signs that a potential pattern breakup was on the way.
- Large flows of ADA holders demonstrate renewed interest from whales, which could indicate accumulation.
Is Cardano (ADA) about to see a substantial price action? Many signs point to a potential bullish outcome in the coming days.
ADA has struggled to muster enough volume to recover from its latest setback. However, this could be about to change now that whale activity is increasing.
The cryptocurrency began October with a significant drop in flows from large holders. This applies to both inputs and outputs.
Activity among large ADA holders rebounded this week, suggesting that whales are once again showing interest in the cryptocurrency.
Inflows from large holders peaked at 4.79 billion ADA over the past 24 hours, while outflows from large holders peaked at $4.72 billion.
Source: In the block
The data suggests that large holders made a net gain over the past 24 hours, hence some accumulation. This suggests that sentiment may be shifting in favor of the bulls despite the recent bearish price action.
On-chain data also revealed an increase in long positions over the past three days. This is further confirmation that bullish sentiment has increased this week.
Source: HyblockCapital
Why an ADA breakout is imminent
The rise in long positions and increased whale activity are not a coincidence, but are most likely related to the price structure of ADA. The cryptocurrency is trading in a wedge pattern supported by ascending support and descending resistance.
ADA has been oscillating within its ascending resistance line for the past 2 weeks and so far it has remained strong. Furthermore, the price is currently approaching the compression zone, which indicates that a trend breakout will occur soon.
Source: TradingView
ADA traded hands at $0.34 at press time. The Money Flow Indicator (MFI) reported that liquidity has flowed into the cryptocurrency over the past seven days.
However, this was not enough to trigger a significant bull run.
Nevertheless, this observation was consistent with the positive net flows observed in the accounts of large holders and with the sharp increase in long positions.
Read Cardano (ADA) Price Prediction 2024-2025
The fact that whale activity is increasing at recent reduced prices suggests a notable likelihood that a bullish breakout could occur over the weekend.
ADA can potentially generate a gain of over 20% if a strong bullish breakout occurs. But this is not necessarily a guarantee, and a bearish breakout can also occur if the cryptocurrency fails to create sufficient demand.
