• Cardano (ADA) has defied expectations by surging 7% in the last 24 hours, driven by strong retail accumulation and rising trading volumes.
  • This price increase has the potential to push the ratio of holders in loss below 55%, while the return of significant whale investors could further bolster ADA’s market performance.

Cardano (ADA), the proof-of-stake blockchain network renowned for its smart contracts, has defied recent predictions of its decline from the top 10 cryptocurrencies by market cap. Instead of faltering, ADA has emerged as the top performer among major coins, experiencing a remarkable 7% surge in the last 24 hours. This unexpected price action has rekindled discussions about ADA’s potential to revisit its 2021 peak of $3.10.

The recent increase in ADA’s price can be attributed to two key factors: a surge in buying pressure and a potential upcoming “battle of the whales.” On-chain data reveals that retail investors, often referred to as the “whaley” masses, have been accumulating ADA aggressively, especially between $0.48 and $0.50. This significant cluster of buyers could provide strong support if the price dips to those levels.

However, there is a looming challenge amid this bullish sentiment. Data indicates that only 40% of ADA holders are in profit. A price increase to $0.49 could be particularly crucial, as it would push the ratio of holders in loss below 55%. Achieving this milestone could trigger further buying pressure as more investors see an opportunity to move into profit territory.

Cardano’s price rally is further fueled by a significant rise in trading volume, reaching a weekly high of $461 million according to Santiment. This surge in activity indicates growing interest in ADA, which could propel the price even higher.

But can this momentum be sustained? The answer might lie with the “original whales,” the large investors who hold a substantial portion of the cryptocurrency. Interestingly, the current distribution of ADA shares some similarities with the market conditions in 2021 when the price hit $3. Back then, whales held roughly 6% of the total supply. Today, that number is nearly 7%, suggesting a potential return of these big players.

However, analysts caution that the success of this “whale comeback” narrative depends heavily on the broader market cycle. If the current bull market reaches its peak, ADA’s price growth could be restricted, hindering its ability to revisit its all-time high.

Cardano’s recent price surge has instilled a sense of cautious optimism in the cryptocurrency community. While the strong buying pressure from retail investors and the potential return of whales are positive signs, current holders’ profitability and the market cycle’s unpredictable nature pose challenges. Nonetheless, if ADA maintains its upward trajectory and attracts continued interest from retail and institutional investors, it could herald a new era of growth for the cryptocurrency.