Cardano (ADA) Price Prediction: ADA Could Be Looking at Significant Gains, But Whales Activity Flashes Bearish Signals

ADA faces a strong resistance towards the $1 price level, but Martinez claims the cryptocurrency is due for a “monster parabolic rally.”

Crypto analyst Ali Martinez has shared his analysis on ADA price, suggesting a potential “monster parabolic rally” in the near future.

According to Martinez, ADA is forming patterns similar to the 2021 crypto market bull run, with the cryptocurrency facing strong resistance towards the $1 price level. However, if past market cycles influence future trends, ADA could be poised for a significant upward move.

In a post on X (formerly Twitter), Martinez shared a chart highlighting the ADA price action, showing the cryptocurrency consolidating within a range before exploding in 2021. A similar accumulation phase appears to have formed recently, marked by a breakout from a key resistance level (shown by the shaded regions and black arrow).

If history repeats itself, ADA could be on the verge of a strong upward move, potentially leading to significant price appreciation.

On the other hand, certain bearish indicators are emerging with ADA’s whale activity. Despite the altcoin remaining in the top 10, ADA’s whales have pulled back sharply, with netflow dropping by 90% in just a week.

Co-founder of algorithmic market maker Vortex, Gleb, shared his thoughts on the matter in a recent X post, stating that when large holders who own 0.1%+ of the supply of a cryptocurrency start reducing their activity, “it signals waning confidence.”

According to Gleb, reduced activity translates to fewer transactions, which in turn leads to lower liquidity and higher volatility. If this continues, “ADA’s price could face some serious pressure.”

The ADA price chart, as presented by TradingView, showcases the digital asset’s price action entering the oversold region but rebounding swiftly, reading a value of 33.16 at press time. The gradient of the line suggests a slight surge in buying pressure and increased chances of an attempt to break $1.

Furthermore, ADA’s price action has dropped to the lower end of the Bollinger Bands and broke below the lower trendline of the Bands a few days ago. Nevertheless, the lower trendline still holds as support for the altcoin.

The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.