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The Cardano Prize recently declined around the $1.1 price level. In particular, the past three months have been marked by a notable Cardano spike, with the price rising above $1 for the first time since early 2022 and peaking at $1.3 on December 3, 2024.
While Cardano has since managed to stay above the $1 mark, its price action over the past 24 hours was highlighted by a 3.77% drop alongside the rest of the crypto market. However, data about the chain show that there is a decline giving crypto whales a new chance to double their wealth.
The increase in whale transactions reflects continued confidence in Cardano
An increase in whaling activity on the Cardano network has brought out a new spirit of accumulation among the holder cohort, with prominent crypto analyst Ali Martinez draw attention to the development on the social media platform
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According to data from on-chain analytics platform Santiment, this increase in activity is particularly notable as whale activity has declined since early December. In particular, Cardano whale activity fell from about 894 transactions on December 2, just before reaching the current peak of $1.3 in 2024, to about 240 transactions between December 8 and 12.
Whale activity is one of the biggest indicators of a network’s performance and price outlook. While whale activity could also indicate whales are exiting their positions, current market sentiment points instead to accumulation. Furthermore, the increase in whale activity is an indication of continued confidence in the cryptocurrency’s price prospects.
The Road to $2: What’s in store for Cardano?
As it stands now, the recent rejection of $1.11 has caused the Cardano price to drop to retest support at $1. At the time of writing, Cardano (ADA) is trading at $1.03, although a risk of further downside movement remains.
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However, the rise in whale trades is a bullish signal that could give the cryptocurrency an upward move due to counterbalancing selling pressure.
The next target remains a definitive break above the $2 threshold, which may still be achievable before the end of the year. Reaching the $2 price target, which is approximately 94% above the current price level, would require overall bullish sentiment in the broader crypto market. Interestingly, crypto analysts at Changelly have presented a more cautious outlook with a year-end ADA price of $1.15.
Nevertheless, Cardano has more than tripled in value over the past six weeks, and it could be can quickly resume this momentum towards $2 if the bulls can stay above $1.
Featured image created with Dall.E, chart from Tradingview.com