Cardano price pumped this week, reaching its highest point since May 28, as the crypto market surged, and as traders waited for the upcoming NIGHT airdrop. ADA token jumped to a high of $0.75, its highest point since May 28 this year.
Whales are Buying ADA Tokens
Cardano price pumped primarily because of the ongoing crypto market surge that pushed Bitcoin above $118,000 for the first time ever. Such moves always trigger more gains among altcoins.
It also happened as whales continued accumulating Cardano tokens. Santiment data shows that holders of between 10 million and 100 million ADA coins increased their holdings to 13.18 billion, up from the year-to-date low of 11.9 billion. This means that they have bought over 1.28 billion coins worth over $900 million.
More data shows that the daily active addresses on Cardano skyrocketed as the price surged. There were 38.6k addresses, the highest level since May 23rd this year.
A potential reason why whales are busy accumulating Cardano is the upcoming Glacier airdrop, in which holders will receive brand new NIGHT tokens starting from next week.
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NIGHT will be the governance token for Midnight, the new privacy-focused sidechain. Midnight will use a technology known as zero-knowledge, which ensures adequate privacy of transactions.
Cardano’s team hopes that Midnight will attract more users to the network as it works towards Bitcoin integration. For example, since Bitcoin transactions are public today, those made inside Midnight will not be easy to track.
Still, the main challenge that will face Midnight is that Cardano’s network has struggled to attract developers and users.
Whales are also buying Cardano because of the rising hopes that the SEC will approve spot ADA ETFs, a move that will lead to more inflows from Wall Street investors.
Cardano Price Technical Analysis
Technically, Cardano price pumped because it formed the highly bullish double-bottom pattern at $0.5147. A double bottom is one of the most common bullish reversal patterns.
Cardano has moved above the 50-day and 200-day moving averages as bulls approach the double-bottom’s neckline at $0.8630. Oscillators like the Relative Strength Index (RSI) and the MACD have all continued rising.
Therefore, ADA price will likely keep rising as bulls target the neckline at $0.8630, its highest level on May 12. More upside will only be confirmed if the Cardano price crosses that resistance level.
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