Cardano Sees Strong Whale Accumulation, Can ADA Price Test $0.88?

Cardano (ADA) is currently trading at approximately $0.73, up nearly 3% in the past 24 hours, showing resilience despite having dropped over 20% since the beginning of 2025. Data from Santiment reveals significant whale activity over the past 48 hours, with large holders (those possessing 1-10 million ADA) accumulating more than 50 million tokens, bringing their collective holdings above 5.95 billion ADA.

This substantial accumulation by whales during a broader market downturn indicates strong confidence in Cardano’s fundamentals and future prospects. As market analysts commonly note, when whale holdings increase during price declines, it typically suggests that strong hands are absorbing selling pressure – potentially setting the stage for a trend reversal.

Social Sentiment Reaches Four-Month High Amid Regulatory Recognition

Social media sentiment surrounding Cardano has reached its highest positive measurement in four months, according to on-chain intelligence platform Santiment. This surge in optimism follows recent comments from the U.S. Securities and Exchange Commission (SEC), which classified Cardano’s use case as “smart contracts for government services.”

The ratio of positive to negative comments about ADA is currently at its highest level since early November 2024, with over 3.5 positive comments for every negative one. This marked improvement in social sentiment comes despite a significant reduction in on-chain activity, with daily transactions down by approximately 70% from their Q4 2024 levels.

Institutional Developments Bolster Adoption Outlook

Recent institutional developments have further strengthened Cardano’s market position. Coinbase is set to introduce ADA futures trading on March 31, 2025, potentially increasing liquidity and improving price discovery mechanisms for the asset.

Additionally, Amina Bank has integrated Cardano staking services, creating a bridge between the cryptocurrency and traditional finance (TradFi). This integration allows clients to earn staking rewards while maintaining full ownership of their ADA holdings, potentially encouraging broader adoption among mainstream investors.

ADA/USD Technical Analysis Points to Potential 20% Rally

Technical analysis reveals that Cardano ADA/USD is trading within an ascending channel pattern, signaling a broader bullish trend despite recent pullbacks. The cryptocurrency is currently testing a crucial support level, with the 50-2W exponential moving average (EMA) at $0.618 serving as a historical strong support zone.

ADA’s immediate resistance lies at the upper range of its current channel at approximately $0.78, which aligns with the 200-day exponential moving average (200-DEMA). A decisive break above this level could trigger a move toward the $0.84-$0.88 range, where a daily fair value gap (FVG) exists – representing a potential 20% return from current price levels.

The Relative Strength Index (RSI) currently hovers around 48-51, suggesting neutral momentum but leaving room for upward movement before reaching overbought conditions. However, the bearish engulfing candle that formed on the weekly chart after ADA’s inclusion in the U.S. Digital Asset Stockpile announcement may indicate short-term caution is warranted.

Market Context and Trading Volume Surge

Cardano’s daily trading volume has increased significantly, rising by over 71% to approximately $1.13 billion in the last 24 hours. This substantial increase in volume amid price gains suggests growing interest from investors, potentially hinting at short-term appreciation.

While ADA has gained 1.44% over the past week and 13.5% in March, it remains down about 15% for the first quarter of 2025. The cryptocurrency’s market capitalization currently stands at approximately $25.73 billion, maintaining its position among the top digital assets by market value.

Cardano Price Forecast: Bullish Signals vs. Broader Market Factors

Looking ahead, Cardano’s price action will likely be influenced by broader crypto market trends, particularly Bitcoin’s dominance and evolving macroeconomic conditions. While technical indicators and social sentiment suggest potential for upward movement, ADA must first overcome significant resistance at $0.78 to confirm a stronger bullish trend.

If support holds and buyers continue accumulating, the path toward $0.88 appears technically feasible in the short term. However, failure to maintain the ascending channel support could lead to a deeper correction, leading ADA price to test lower support levels at the 50-week EMA ($0.668) or the 100-week EMA ($0.59).