Cardano Price Surge: Whales Accumulate Ahead of NIGHT Airdrop!
Cardano Price Surge: Whales Accumulate Ahead of NIGHT airdrop
Cardano Experiences Significant Price Increase
This week, Cardano’s price saw a notable rise, hitting its highest level since May 28, coinciding with a broader surge in the cryptocurrency market. The ADA token reached a peak of $0.75, marking a significant milestone for traders as they anticipate the forthcoming NIGHT airdrop.
Increased Whale Activity in Cardano
The recent price surge for Cardano can be attributed to the overall bullish trend in the cryptocurrency market, particularly as Bitcoin surpassed $118,000 for the first time. Such movements often lead to increased interest and gains among alternative cryptocurrencies.
Additionally, data from Santiment indicates that large holders, or “whales,” have been actively accumulating ADA tokens. Those holding between 10 million and 100 million ADA have increased their total holdings to 13.18 billion, a rise from a low of 11.9 billion earlier this year. This accumulation represents an investment of over $900 million, with more than 1.28 billion coins purchased.
Moreover, the number of daily active addresses on the Cardano network surged to 38,600, the highest figure since May 23, reflecting growing user engagement.
Source: Santiment
A key factor driving this accumulation is the upcoming Glacier airdrop, where ADA holders will receive new NIGHT tokens starting next week.
What is the NIGHT Token?
NIGHT is set to be the governance token for Midnight, a new privacy-focused sidechain. Utilizing zero-knowledge technology, Midnight aims to enhance transaction privacy, making it difficult to trace transactions compared to public Bitcoin transactions.
The Cardano team is optimistic that Midnight will attract more users to its network, especially as it seeks to integrate with Bitcoin. However, the challenge remains that Cardano has historically struggled to draw in developers and users.
Whales are also motivated by the increasing speculation that the SEC may approve spot ADA ETFs, which could lead to significant inflows from institutional investors.
Technical Analysis of Cardano’s Price Movement
Source: TradingView
From a technical standpoint, Cardano’s recent price increase can be attributed to the formation of a bullish double-bottom pattern at $0.5147. This pattern is commonly recognized as a strong indicator of a potential price reversal.
Cardano has successfully moved above both the 50-day and 200-day moving averages, with bullish momentum building as it approaches the double-bottom neckline at $0.8630. Key indicators such as the Relative Strength Index (RSI) and the MACD are also showing upward trends.
As a result, it is likely that the ADA price will continue to rise, with bulls targeting the neckline at $0.8630, which represents its highest point since May 12. A confirmed breakout above this resistance level would signal further upward potential for Cardano.
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