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The Cardano price has recently rejected around the $1.1 price level. Notably, the past three months have been highlighted by a remarkable Cardano surge that saw it break above $1 for the first time since early 2022 and peak at $1.3 on December 3, 2024.
Although Cardano has managed to hold above the $1 mark since then, price action in the past 24 hours has been highlighted by a 3.77% decline alongside the rest of the crypto market. However, on-chain data shows that the decline has given crypto whales another opportunity to double down on their holdings.
Surge In Whale Transactions Reflects Continued Confidence In Cardano
A surge in whale activity on the Cardano network has brought forward another spirit of accumulation among the holder cohort, with prominent crypto analyst Ali Martinez highlighting the development on the social media platform X. Martinez noted that 687 transactions with a value of at least $1 million were recorded within the past 24 hours, pointing to increasing interest from large investors.
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According to data from the on-chain analytics platform Santiment, this increase in activity is particularly notable, as the whale activity had been declining since the beginning of December. Particularly, Cardano whale activity declined from about 894 transactions on December 2, just before it reached its current 2024 peak of $1.3, to around 240 transactions between December 8 and December 12.
Whale activity is one of the biggest indicators of a network’s performance and its price outlook. Although the whale activity could also point to whales exiting their positions, current market sentiment points to accumulation instead. Furthermore, the increase in whale activity is an indication of continued confidence in the cryptocurrency’s price outlook.
The Path To $2: What Lies Ahead For Cardano?
As it stands, the recent rejection at $1.11 has seen the Cardano price decline to retest the support at $1. At the time of writing, Cardano (ADA) is trading at $1.03, although there remains a risk of a further move to the downside.
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However, the surge in whale transactions is one bullish signal that could send the cryptocurrency on a bounce upwards due to its counterweight action against selling pressure.
The next target remains a final break above the $2 threshold, which might still be achievable before the end of the year. Reaching the $2 price target, which is about 94% from its current price level, would require a general bullish sentiment in the wider crypto market. Interestingly, crypto analysts at Changelly have presented a more cautious outlook with a year-end ADA price of $1.15.
Nonetheless, Cardano has more than tripled in its value in the past six weeks and it could resume this momentum anytime soon towards $2 if the bulls can continue to hold above the $1 mark.
Featured image created with Dall.E, chart from Tradingview.com
