- Cardano price exits a 5-week correction amid a flag pattern breakout.
- On-chain data shows the top-100 ADA addresses control 29.6% of the circulation supply, while the long-term holders hold 54% of the available supply.
- The momentum indicator RSI (Relative Strength Index) is nearing a 60% breakout, indicating strong bullish momentum for a higher rally.
ADA, the native cryptocurrency of the Cardano ecosystem, jumps 2.33% during Wednesday’s U.S. market hours to trade at $0.885. While the buying pressure aligns with recovery in the broader market, the Cardano price gains additional momentum amid the steady accumulation of top addresses and long-term holders. The rising coin price also offers a bullish breakout from a bullish continuation pattern called a flag, signaling the potential for a higher rally ahead. Will this altcoin hit $1 by the end of September?
ADA Whales Tighten Grip as Top 100 Wallets Control 29.6% of Supply
The native token of Cardano, ADA, is experiencing a clear accumulation pattern among the largest holders of the asset, changing the on-chain distribution dynamics of the asset. According to the recent statistics, the top 100 addresses now hold close to 29.6% of the floating supply.
It is an increment to the trend of increasing concentration among high-value wallets, which indicates that significant participants are not shrinking their exposure but expanding their role.
The accumulation of ADA in these addresses has been slow and is indicative of a trend of strategic purchase as opposed to a transitory trading action. This tendency to concentrate supply into a comparatively small set of actors frequently suggests that whale addresses, whether exchanges, institutions, or high-net-worth persons, are busy hardening their grip on the token economy of the network.
In addition to the trend of accumulation of whales, the percentage of ADA constituting long-term holdings has grown as well. Statistics indicate that about 54% of the available supply is being occupied by addresses that have been holding their coins across a long horizon.
These wallets have not been committing to high trading but have preferred to hold on to their positions, which is an indication that they have an investment horizon that extends well beyond the short-term fluctuations of prices.
This supply is controlled by whales, and the long life span of wallets points to a continuing reallocation of ADA out of active circulation into the more dormant storage.
Flag Breakout Pushed Cardano Price Out of Correction Trend
In the last two weeks, the Cardano price witnessed a bullish rebound from $0.78 to the current trading price of $0.888, accounting for 13.64%. While the majority of major cryptocurrencies are struggling to drive a sustained recovery, the ADA price shows a strong bullish continuation pattern called a flag.
Typically, the chart setup is characterized by a long ascending trendline, denoting the dominating trend in size,` followed by a temporary pullback within two trendlines.
With today’s price jump, the Cardano price breaks out of the flag channel, accelerating the recovery potential for a higher rally. The rising price also reclaimed the 50-day exponential moving average, restoring the bullish sentiment in the market.
With sustained buying, the post-breakout rally could push the price 8.53% up to challenge the $0.96 barrier, followed by a leap to $1.02.
On the contrary, the ADA price could show a short pullback to the breached trendline and validate its sustainability for next year. If the price re-enters the flag channel, the sellers could attempt to reclaim their control over this asset for a prolonged correction.
