Cardano Breaks the Triangle: Whale Accumulation Powers the Price

Cardano has been soaring recently, with a critical surge over the past week.

Spacecrypto digs into the key elements driving this vertical energy, including a breakout on a specialised example and an increase in whale harvesting. A new analyst review highlights the remarkable 22% increase in the cost of Cardano in the last week.

Detailed Breakout of Cardano Signals Bullish Trend

This increase was instrumental in pushing ADA beyond a balanced triangular pattern that had recently limited its price movement. This behaviour naturally demonstrates a period of market uncertainty, often followed by a breakout towards the prevailing trend.

The breakout of the upper trendline of the triangle on Thursday implies a positive change in market sentiment. This break suggests that buying pressure is offsetting selling action, and the RSI confirms this bullish view.

Cardano's RSI currently sits at 62.09, showing signs of bullish movement. The RSI is an important tool for measuring the overbought or oversold condition of an asset. It lies in the range between 0 and 100, with readings above 70 suggesting that the asset is in an overbought zone and ready for a correction. On the other hand, readings below 30 indicate oversold conditions, suggesting a possible recovery.

This bullish outlook is further supported by the Elder-Ray Index, which currently sits at a positive 0.18. This reinforces Cardano's strength and aligns with the broader bullish sentiment in the market.

Whale Accumulation Adds Fuel to this Trend

Another crucial factor contributing to Cardano's uptrend is the increase in whale accumulation. According to reports, the number of portfolios holding between 1 million and 10 million ADAs (whales) has reached a new monthly high of 2,484. This represents a significant increase from the monthly low of 2,453 recorded on 9 January.

The increasing number of whale-sized ADA portfolios suggests growing interest and institutional confidence in Cardano's potential. This accumulation trend could further push Cardano's price upwards, fuelled by the combined buying power of these whales.

Will Cardano Maintain the Pulse?

With a successful retest of the breakout level, Cardano could see its price move towards the 30-day high of $1.34. However, a failed retest could bring ADA back within the bounds of the symmetrical triangle, with a possible descent to $0.94.

To conclude, technical indicators and on-chain data paint a promising picture for ADA. The breakout above the triangle, combined with rising RSI and positive Elder-Ray Index readings, suggest that the bulls are firmly in charge. Increased accumulation by the whales further reinforces this bullish view, potentially paving the way for a rally for Cardano.