ADA Investors, Brace Yourselves: Cardano Could Be in for Wild Price Action – Here’s Why

TL;DR ADA’s price has consolidated at around $0.73 for a while now, but tightening Bollinger Bands suggest incoming volatility. Whales have accumulated 240 million ADA last week, reducing the circulating supply and potentially signaling a bullish move. Buckle up for Potential Turbulence Cardano’s ADA has hovered between $0.69 and $0.77 in the past week, currently trading at approximately $0.73 (per CoinGecko’s data). According to one essential metric, the price volatility may increase substantially in the near future . The indicator in question is the Bollinger Bands, which has squeezed on the 12-hour chart (according to the popular X user Ali Martinez). The technical analysis tool, developed by John Bollinger in the early 1980s, assists traders in detecting when an asset may be overbought or oversold and spot potential price breakouts or reversals. Typically, tightening its bands suggests that the token has experienced relatively low volatility as of late, which could be followed by a huge resurgence or an intense pullback in the short term. Earlier this week, the market observer using the X moniker Lucky told their more than two million followers that ADA might witness “another big move” in the following months. “Strong fundamentals and increasing adoption make Cardano a reliable choice. The ecosystem continues to expand, solidifying its market position,” the analyst stated. The Whales Activity An important element suggesting that ADA’s price may soon rally is the recent buying spree from large investors. Martinez revealed that whales purchased 240 million tokens last week, which equals more than $175 million (calculated at current rates). Such accumulations generally suggest that a price pump could be on the horizon. After all, they decrease the circulating supply of ADA on the open market, which could be followed by a resurgence (assuming demand remains the same or heads north). In November 2024, large investors scooped up millions of ADA when the token’s price stood at around $0.90. Just a few days later, the valuation briefly jumped beyond $1.30. Massive sell-offs, on the other hand, can have the opposite effect. At the start of February, whales offloaded more than 330 million ADA (worth almost $250 million at the time ). While Cardano’s native token was hovering above $0.80 at the moment of the selling spree, it gradually declined to as low as $0.70 in the following days. The post ADA Investors, Brace Yourselves: Cardano Could Be in for Wild Price Action – Here’s Why appeared first on CryptoPotato .