Cardano Price Approaches $1 as Major Wallets Continue Accumulating

Cardano Price Approaches $1 Amid Sustained Accumulation by Major Holders

Cardano (ADA) has demonstrated notable upward momentum this week, surging over 26% and nearing the significant $1 threshold. This rally is largely supported by substantial accumulation from large holders—commonly referred to as "whale" wallets—and an absence of considerable selling pressure. These factors suggest that the recent price movement may extend beyond a mere short-term rebound.

Continued Accumulation by Whale Wallets

On-chain data reveals that wallets holding between 1 million and 10 million ADA, often regarded as market-moving whales, have steadily increased their share of the circulating supply. Their holdings have expanded from approximately 33% in January to 36.15% by mid-July. Remarkably, these large holders maintained or even augmented their positions during ADA’s sharp rally in March, indicating sustained confidence in the token’s potential for further gains.

The activity of these major holders is closely monitored by market participants, as their accumulation or distribution patterns frequently influence broader market trends.

Muted Selling Pressure and Technical Indicators

Supporting the bullish outlook, on-chain metrics such as the Spent Coins Age—which measures the dormancy period of coins before movement—briefly spiked in mid-June but has since reverted to lower levels. This trend suggests that long-term holders are largely refraining from selling older ADA coins, a classic indicator of strength during upward price movements.

Previous spikes in the Spent Coins Age metric did not coincide with significant price increases, implying that recent sales from older wallets were not primarily driven by profit-taking. This dynamic reduces the likelihood of large-scale sell-offs that could hinder the current rally.

Key Resistance Levels and Market Outlook

At present, Cardano is trading around $0.73, slightly above the 0.618 Fibonacci retracement level at $0.7287. The immediate resistance levels are positioned at $0.77, a strong horizontal barrier, and $0.78, corresponding to the 0.786 Fibonacci retracement. A decisive break above these points could pave the way toward $0.86, with the 1.618 Fibonacci extension targeting $1.08—representing a potential 46% upside from current prices.

Conversely, a decline below $0.72 followed by a retest of the $0.68 support level (the 0.5 Fibonacci retracement) could undermine the bullish scenario.

Broader Market Dynamics and Emerging Challenges

Cardano’s recent rally aligns with a broader positive sentiment in the cryptocurrency market, largely propelled by Bitcoin’s recent gains, which have buoyed many altcoins. Nonetheless, caution remains warranted. ADA’s 23% increase over the past week has pushed the market into potentially overbought territory, heightening the risk of a short-term correction or increased selling pressure.

Competition within the sector is intensifying. Solana has attracted attention as it threatens to surpass Ethereum in market capitalization, while BlockDAG is gaining momentum through a $321 million presale and a high-profile airdrop campaign. These developments may influence investor focus and capital allocation in the weeks ahead.

Conclusion

With sustained accumulation by whale wallets, limited indications of mass selling, and a supportive technical framework, Cardano’s advance toward the $1 mark appears increasingly feasible. However, traders should remain vigilant regarding overbought conditions and the evolving competitive landscape within the altcoin market, both of which could affect ADA’s near-term trajectory.