Where Is Cardano’s Price Going Next?

Whales keep increasing their exposure to the cryptocurrency.

Cardano’s native token is among the best-performing cryptocurrencies (from the top 100 club) over the past week, with its price rising by 8% to around $0.17.

Two key developments suggest the uptrend might be just at its starting point, while another factor hints that an upcoming correction is just as likely.

Bulls vs. Bears

Earlier this month, the large ADA investors, known across the crypto space as whales, increased their total holdings to 25.6 billion coins. This represents almost 70% of the token’s circulating supply and is the highest level since February 2023. At the same time, retail investors have reduced their exposure to ADA, with Santiment explaining that this combination could create a healthy setup for the asset.

Just recently, the renowned analyst Ali Martinez revealed that whales have purchased 30 million units (worth over $5 million at current rates) over the last month. The obvious revival of this cohort of investors signals that they are positioning for the next potential price upswing.

There is a common theory in the crypto world that whales have access to inside information about events or news that could impact the valuation of a certain asset and that they rarely jump on the bandwagon out of pure intuition. That said, their efforts may encourage smaller players to join the ecosystem and distribute fresh capital.

The second bullish element is ADA’s Relative Strength Index (RSI). The technical analysis tool measures the latest speed and magnitude of price changes to evaluate whether the token is poised for a trend reversal. Readings below 30 put ADA in oversold territory and due for a possible rally, while anything above 70 serves as a warning for an impending correction. Currently, the RSI stands at around 28.

However, there is also a bearish factor to be considered. Lately, exchange inflows have surpassed outflows, meaning that investors have abandoned self-custody and flocked toward centralized platforms: a development that increases immediate selling pressure.

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Recent Predictions

Several analysts on X have noted ADA’s rebound, expecting a much more substantial push north in the short term. Master of Crypto claimed that if the positive trend continues, the price could surge to $0.219.

Others like JAVON MARKS are even more bullish, envisioning hard-to-believe explosions (at least from the current perspective). The analyst opined that ADA moves towards “a key convering/breaking point” which could open the door to an increase to as high as $2.90. Celal Kucuker also chipped in lately, predicting a major ascent to $5.