- Per Brandt, ADA was ripe for the next leg higher after defending March peak.
- Strong whale accumulation could set ADA’s next bull run.
Cardano [ADA] marked $0.8 as the local bottom after December and leveraged the support for a 34% recovery gain over the past two weeks. Interestingly, the $0.8 was the March 2024 peak, and the altcoin has so far defended for a possible leg higher.
Reacting to the development, renowned trader and analyst, Peter Brandt, noted that ADA was ready for a ‘grand bull run’ after marking the March high as a bottom.
“Alt season???? Make no doubt about it, Cardano $ADAUSD has bottomed for a grand bull market”
Source: X
Such consolidation above a previous price peak tends to trigger a massive upside momentum in most cases.
Notably, if the likely rally follows a bull flag pattern, the bullish target would be $1.9, just shy of $2—A 72% potential gain.
Will whales drive ADA higher?
Source: Santiment
Two whale wallets, holding 100M-1B ADA (yellow) and 1M-10M ADA (red), have been accumulating for the past week. Collectively, they held about 9.4 billion ADA as of this writing.
However, another whale cohort (10M-100M coins, blue line) had the largest stash of 11.94 billion ADA and has been offloading over the same period.
Price action mirrored the behavior of the 100M-1B ADA (yellow) whale cohort. Their increased accumulation could drive prices higher.
The recent upswing, which has tapped the supply zone at $1.12, could tempt swing traders to book profits. If so, ADA could briefly cool off to $1 or the trendline resistance before attempting to break above the supply zone.
Source: ADA/USDT, TradingView
A short squeeze above resistance could push ADA to $1.4 and bring the $1.5 target within reach. This projection is based on the ascending triangle pattern, whose bullish breakout targets $1.4.
On the market positioning front, most traders on Binance are net long on ADA. In fact, for the past two days, long positions have increased from 66% to 77%, underscoring strong bullish conviction for the altcoin.
Source: Coinglass
