Cardano Price Rises 9% as Bulls Target $0.31 Soon Amid Whale Accumulation

Highlights:

• Cardano price has increased by 9% to trade at $0.29 mark today.
• The on-chain data shows intense whale accumulation, as the funding rate flips positive.
• The technical picture points to further upside, as ADA bulls aim at $0.31 soon.

Cardano price is showing strength, recovering to $0.29, marking a 9% rise today. The positive on-chain and derivatives data reinforce this, as whale wallets continue to grow their exposure. Technically, the price motion is bullish, as the ADA token has shattered a falling channel pattern.

Meanwhile, the Supply Distribution data, provided by Santiment, provides a good sign of a promising future for Cardano. This comes as the population of large- wallet holders is on the rise. The metric reveals that the cumulative ADA tokens of whales possessing 1 million to 10million ADA tokens and possessing 10million to 100 million ADA tokens are 260 million ADA tokens. This consists of the time from February 14 to February 26. Meanwhile, wallets having a balance of 100 000 to 1 million ADA lost 20 million ADA tokens.

This demonstrates that there was a possibility that the second group of whales succumbed to the capitulation phenomenon. Conversely, the former group of wallets took advantage of the situation and filled Cardano while it was at a dip.

The derivative data shows a positive funding rate, supporting the bullish momentum in ADA. On Tuesday, the rates of Cardano funds turned positive and rose to 0.0027% on Thursday, which means that longs are repaying shorts. This positive sentiment around Cardano price could see further upside, as ADA bulls aim at $0.31 soon.

Cardano Price Targets $0.31 Soon as Bullish Grip Mounts

The ADA/USD 4-hour chart shows a clean breakout above a falling channel. The altcoin has smashed through key resistance zones around the 50-day SMA at $0.27 and the 200-day SMA at $0.29. This suggests that whales may be accumulating liquidity at those highs, which is a classic setup for further upside movement.

Meanwhile, indicators such as the RSI are at 65.69 above the signal line at 52.79. This signals that there is an intense buying appetite in the ADA market, but it is not yet overbought. In other words, the ADA price has room to run without being overextended, as bulls target the next resistance around $0.31. 

Cardano has been on a prolonged downtrend that saw the altcoin hit the $0.22 lows on Feb 6. However, with the recent recovery in the crypto market, led by BTC, which has climbed to $68,000 today, major altcoins, including ADA, have rebounded. The chart analysis suggests the $0.31 mark soon, if the bullish momentum is sustained.

In the meantime, the immediate key support zone sits around $0.27 to $0.291, where ADA found its footing before the breakout. In case of early profiteering, these zones could act as a safety net for the bulls. Cardano price action shows that if the $0.31 level gives way, ADA could rally to the $0.33-$0.43 marks in the medium term.