- ADA flashed multiple signs indicating that a potential pattern break was on the way.
- ADA large holder flows demonstrate renewed interest by whales, which could indicate accumulation.
Is Cardano [ADA] on the verge of a substantial price move? Multiple signs point towards a potential bullish outcome in the coming days.
ADA has been struggling to sum up enough volumes to recover from its latest pullback. However, that might be about to change now that whale activity has been on the rise.
The cryptocurrency kicked off October with a significant dip in large holder flows. This goes for both inflows and outflows.
ADA large holder activity bounced back this week, suggesting that whales are once again showing interest in the cryptocurrency.
Large holder inflows peaked at 4.79 billion ADA in the last 24 hours, while large holder outflows peaked at $4.72 billion.
Source: IntoTheBlock
The data suggests that large holders had a net gain in the last 24 hours, hence some accumulation. This suggests that the sentiment might be shifting in favor of the bulls despite the recent bearish price action.
On-chain data also revealed a surge in long positions in the last three days. This is further confirmation that the bullish sentiment has been growing this week.
Source: HyblockCapital
Why an ADA breakout is imminent
Surging longs and increased whale activity are not a fluke, but most likely tied to ADA’s price pattern. The cryptocurrency has been moving within a wedge pattern underpinned by ascending support and descending resistance.
ADA has been hovering within its ascending resistance line for the last 2 weeks and so far it has held strong. Also, the price is currently closing in on the squeeze zone, indicating that a pattern break will occur soon.
Source: TradingView
ADA exchanged hands at $0.34 at press time. The Money Flow Indicator (MFI) signaled that liquidity has been flowing into the cryptocurrency for the last seven days.
However, it was not enough to trigger a major bullish march.
Nevertheless, this observation was consistent with the net positive flows observed in large holder accounts and the surging longs.
Read Cardano’s [ADA] Price Prediction 2024–2025
The fact that whale activity is surging at recent discounted prices suggests a noteworthy probability that a bullish breakout may play out during the weekend.
ADA can potentially deliver a 20% plus gain if a strong bullish breakout occurs. But this is not necessarily a guarantee, and a bearish breakout may also occur if the cryptocurrency fails to build up enough demand.