Cardano Whales Want ADA Price at $1, But Beware of Bull Traps

Cardano whales rejoice at the end saw a record increase in the price of Cardano (ADA) in 7 days, with an increase of almost 20%.

As Cardano holders are eyeing big gains as ADA price recovered above the key $0.375 level, there were still some hurdles that the altcoin faced.

ADA Price: Quick Profit, Quick Loss

Cardano price is down 87.52% from its all-time high of $3.10 in September 2021. The recent 20% weekly gain managed to reverse the 10-day loss, causing ADA price to drop to $0.330.

Over the past few days, Cardano ranks second in terms of money inflows, with $2.3 billion in inflows to its market cap, which equates to an increase of about 16%.

cardano money flow
Source: Cardano Daily

Apart from Cardano, other layer-1 blockchains that saw growth were Ethereum Classic and Avalanche, with 14% and 13.4% gains in money flow, respectively.

Although Cardano’s market capitalization surged sharply, its subsequent losses were also notable. As of press time, ADA saw a price drop of 5.73%, which is the highest among all other top 10 cryptos by market cap.

ADA appears to have made quick gains followed by sharp losses as the market started to turn red with the weekend.

How far can Cardano whales take ADA price?

ADA Price Gain placed the coin high on the investors list in 8th place but only briefly. On 27 October, data from LunarCrush showed that in terms of relative combined social activity and market activity, Cardano occupied the alternate rank of 1 out of the top 3,954 coins across the market.

cardano social volume
Source: moon crush

In addition to high social sentiment, Whale’s support with 10,000 to 1 million coins (%) aided Cardano’s bullish price action on 26 October. The said group piled up on ADA, as Cardano whale addresses saw an increase from October 25 to October 27. ,

Nevertheless, with price action weakening, their holdings also seem to be decreasing.

cardano whale
ADA Supply Distribution | Source: Sentiment

Small fish with 1000 to 10,000 coins increased their holdings from 4.96% to more than 5% last month.

On October 26, whale trading numbers presented a healthy uptick, indicating that whales are attempting to push ADA price higher amid a bullish market rally. However, no increase was observed in the total supply of the stablecoin by whales above $5 million.

cardano price
Cardano MVRV | Source: SanBase

Furthermore, the ADA MVRV Z-score was still running negative, indicating that the coin was still undervalued. MVRV gives an insight into overall investor behavior as price moves from/to their cost basis.

The ADA 7-day MVRV ratio rose to the highest level seen in a year, however, it saw a quick return to negative territory.

For now, on-chain metrics for ADA presented that there was more pain for Cardano holders and further whales. The $0.50 and $0.70 resistance levels are the key to the ADA price before the Cardano whale targets the $1 mark. As technical for ADA on the bearish side, ADA price may revisit the $0.375 support level.

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