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ADA Investors, Brace Yourselves: Cardano Could Be in for Wild Price Action – Here’s Why
As the cryptocurrency market continues to navigate its ongoing volatility, investors are left wondering what’s next for Cardano (ADA). With the token currently trading at around $0.73, some may be tempted to take a wait-and-see approach or even exit their positions altogether. However, there are several key indicators that suggest ADA could be on the cusp of a significant price swing.
First and foremost is the Bollinger Bands indicator. As you can see from the attached chart, the 12-hour chart has seen its bands tighten in recent days, signaling to traders that this asset may experience increased volatility in the near future. This occurs when the bands contract, meaning there’s less room for price movement. When such a contraction takes place, it can be an indication of a significant shift in sentiment or market conditions.
Moreover, there has been some notable activity from large investors. According to recent data, these ‘whales’ have purchased an impressive 240 million ADA tokens over the past week, which amounts to roughly $175 million at current prices. It’s imperative to note that this kind of accumulation can potentially lead to a price increase, as it diminishes the circulating supply and may be followed by a rally in demand.
For those who may recall, we witnessed a similar scenario unfold last November when whales bought up millions of ADA at around $0.90, only for the token’s valuation to briefly surge past $1.30 shortly after. On the other hand, massive sell-offs can have the opposite effect. When these large investors sold off more than 330 million ADA in early February, the price dropped from over $0.80 to as low as $0.70 a few days later.
To put it bluntly, there’s been no shortage of excitement and unpredictability surrounding Cardano (ADA) so far this year. As such, it is crucial for investors to stay vigilant and monitor these key indicators closely, lest they miss the opportunity to profit from any forthcoming price action.
Source: https://cryptopotato.com/ada-investors-brace-yourselves-cardano-could-be-in-for-wild-price-action-heres-why/
