Cardano Whales Buy the Dip, Why This Analyst Is Bullish On ADA

Cryptocurrency analyst Dan Gambardello examines whale accumulation patterns in Ethereum and Cardano amid ongoing market consolidation.

The analyst discusses downside targets and has also maintained a bullish long-term outlook based on institutional inflows and historical chart patterns across both cryptocurrencies.

Ethereum Whales Accumulate Billions Amid Consolidation Resistance

Dan Gambardello highlights massive whale accumulation in Ethereum despite weeks of consolidation at multi-year triangle resistance levels.

Ethereum whales accumulated $2.5 billion worth of ETH on Sunday, marking the largest daily inflow since 2018 as price consolidates in a multi-month range similar to 2017 patterns.

Institutional interest continues building through ETF channels, with Ethereum ETFs recording a 5X increase in weekly inflows totaling $530 million.

Whales have accumulated $435 million worth of ETH through over-the-counter deals, while yesterday’s ETF inflow reached $21.4 million as institutions maintain accumulation strategies.

Gambardello observes that the price action is quite tense because there is persistent resistance at Ethereum’s multi-year yellow bottom trend line of a huge triangular formation.

Despite continuous institutional buying pressure, there are regular wicks and suppression at key technical levels during the roughly six-week consolidation period.

The analyst makes reference to Ethereum’s risk model data. It displays compression patterns reminiscent of those observed in 2017. At the time, parabolic bull market advances were preceded by prolonged consolidation.

While Ethereum is experiencing possible downward volatility, whale accumulation is currently taking place. This indicates that institutions expect higher prices despite short-term market uncertainty.

Cardano Targets 50 Cents Downside before Potential $2 Breakout

Gambardello believes Cardano’s downside objectives might be around 50 cents. He further mentioned that during unpredictable market situations, the price could fall to 40 cents.

The analyst recognizes the current weekly red candles while preserving perspective based on historical trends and past consolidation periods.

ADA is currently trading in a falling wedge pattern, with the analyst watching a higher low Fibonacci range that was previously tested during COVID-era swing lows.

The lower range of this Fibonacci consolidation may be tested further if cryptocurrency prices continue to fall amid present global concerns.

Gambardello has a $2 higher target price for Cardano and long-term bullish expectations despite short-term negative risks.

With the 20-week moving average at 71 cents, roughly 10 cents above the current ADA price, the analyst observes moving average compression levels distinct from the previous time frames.

Cardano would enter good macro conditions if it broke above the 65–71 cent level. That would move it toward the $2 target.

The trend is in line with other breakouts out of consolidations that resulted in spectacular price appreciation.

Gambardello identifies parallels between today’s consolidation and historical times of bull market preparation by comparing today to the past.

As in historical times of consolidations to significant price appreciations in ADA, the falling wedge pattern may be supporting upward breakout trends.

Analyst Maintains Bullish Targets Despite Geopolitical Market Pressures

Gambardello holds his $4,000 Ethereum and $2 Cardano price targets despite acknowledging short-term Middle East tensions and overall geopolitical uncertainty.

The analyst anticipates high levels of fear capitulation that will impact cryptocurrency markets while holding long-term positive expectations.

For Ethereum, a breakout above present levels of consolidation may lead to initially the $3,500 level, with the prime target remaining at $4,000.

This target is at prior swing highs and would start a larger bull market move for Ethereum.

The analyst is noticing an upward broadening wedge formation on Ethereum’s daily charts with the downside targets of around $1,800 in the event of a breakdown.

This is near the earlier mentioned swing low to swing high Fibonacci channels of $1,900 to $1,600-$1,700.

Gambardello points out the need to discuss upside targets when market uncertainty exists. He explained that sentiment is very bearish prior to reversals occurring.

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