TLDR:
- ADA price extends gains toward $0.80, trading around $0.69 after rallying nearly 9%
- Whale wallets actively accumulating ADA tokens during recent price dips
- Long-to-short ratio at 1.06, highest level in over a month, indicating bullish sentiment
- OI-Weighted Funding Rate turned positive, suggesting market expects price increase
- Analysts project potential 10x surge in ADA’s value by 2025, with targets up to $7
Cardano (ADA) continues its impressive rally, trading at approximately $0.69 as of Wednesday after gaining nearly 9% the previous day. The positive momentum comes amid strong on-chain metrics and growing investor confidence in the cryptocurrency’s future.
The recent price movement has caught the attention of both retail and institutional investors. Data from Santiment’s Supply Distribution metric reveals a clear bullish trend as whale wallets have been actively accumulating ADA tokens.
These large investors holding between 100,000 to 1 million ADA tokens have increased their holdings from 5.69 billion to 5.89 billion between April 14 and Wednesday. Similarly, wallets with 1 million to 10 million tokens grew from 5.65 billion to 5.73 billion in the same period.
Even more impressive, the largest whale category, controlling between 10 million to 100 million ADA, boosted their holdings from 12.67 billion to 12.87 billion tokens. This pattern of accumulation during price dips demonstrates strong confidence from major players in the market.
Market Sentiment Turns Positive
Further supporting the bullish case, Coinglass’s ADA long-to-short ratio currently reads 1.06, representing the highest level in over a month. This metric indicates more traders are betting on price increases rather than declines.
The OI-Weighted Funding Rate data provides additional confirmation of positive sentiment. This metric, which flipped positive on Monday, currently stands at 0.0096% – the highest level since February 22.
A positive funding rate means traders in long positions are paying those in short positions, typically signaling bullish market expectations. This development suggests fewer traders expect Cardano’s price to fall compared to those anticipating further gains.
From a technical perspective, Cardano successfully tested and held support around the 78.60% Fibonacci retracement level at $0.50 on April 7. Since then, it has rallied by 21% over two weeks and now trades above the critical 61.8% Fibonacci retracement level at $0.67.
The Relative Strength Index (RSI) reads 57, pointing upward above its neutral level of 50, confirming the building bullish momentum in ADA’s price action.
Future Price Targets
If the current upward trend continues and ADA breaks above the 200-day Exponential Moving Average (EMA) at $0.71, the rally could extend to retest the weekly resistance level at $0.74, with potential to reach the psychologically important $0.80 mark.
Several prominent analysts have shared even more optimistic long-term price predictions. Crypto analyst Jad Mubaslat projects a 1,000% surge to $7 by 2025, basing this forecast on historical price cycles.
Analyst Ali Martinez points to ADA breaking out of a Triangle pattern, which could lead to a 27% price move in the near term. Another market watcher, Kris Does Crypto, aligns with a $5.33 prediction, citing ADA’s technological advancements and increasing adoption rates.
However, caution remains warranted. A daily candlestick close below Monday’s low of $0.61 would weaken the bullish outlook and potentially lead to a retest of support around $0.50.
The Cardano community is currently organizing an important meeting to discuss treasury fund allocation to boost liquidity for native stablecoins. This initiative aims to strengthen Cardano’s DeFi ecosystem by bringing together stablecoin issuers and governance action authors.
Institutional adoption continues to grow, with analyst Mitchell Bouchard highlighting the platform’s expanding smart contract ecosystem as a major growth driver. Cardano’s partnerships with governments and NGOs, such as its collaboration with the Ethiopian government, showcase real-world applications of the technology.
The introduction of the Lace Wallet, a multi-chain solution with a built-in DApp store and staking reward automation, enhances user experience and may attract more users to the ecosystem.
As of the most recent data, Cardano (ADA) is trading at approximately $0.69, reflecting a 12.17% increase over the last day and 14.55% growth over the past week.
