Can the bulls push the price of ADA to 1 dollar as open contracts surge?

Cardano (ADA) has recorded a net trading cash flow on the exchange with a downtrend, indicating that selling pressure is weakening. The continuous outflow of cash can be seen as a positive sign for accumulation. Investors in ADA have reasons to be optimistic in the coming weeks.

The breakout from the descending wedge pattern indicates that the possibility of the price reaching 1 USD is very feasible.

According to data from Coinalyze, the open contract (OI) has increased to over 90 million USD since September 5, while the price has risen by 9.9%. This is another sign of sustained optimistic sentiment over the past week.

Ethereum (ETH) is also preparing for a positive transformation after showing strength since July. The price increase of ETH may stimulate other altcoins, including Cardano.

Accumulation of Cardano whales and slight profit-taking

In a post on X, Joao Wedson, the founder of Alphractal, pointed out that whales are accumulating more ADA. Currently, 29.6% of the total supply is held by the top 100 addresses, as indicated by the ratio of these addresses.

Source: Joao Wedson on XLong-term investors currently hold 54% of the available Cardano tokens. The accumulation of whales along with the holdings of long-term investors is a strong sign of optimism from major investors towards the project. However, this also poses risks from a potential mass sell-off by whales.

Source: Joao Wedson on XNegative information affecting Bitcoin (BTC) can have a strong impact on Cardano, especially if it causes long-term investors to panic.

Although this is not an immediate threat, it is still a factor that investors need to be aware of.

Considering the transactions of whales in recent months, the price increase on August 14 was accompanied by increased whale activity and overall network activity. However, the circulating supply did not record any significant increase.

Source: SantimentThis suggests that the price increase to 1 USD last month was not accompanied by a significant wave of profit-taking. This finding further strengthens the idea of accumulation by large investors.

However, the number of daily active addresses has stabilized recently after an increase in mid-April, indicating that development and activity have returned to average levels since March.

Overall, the indicators suggest that investors believe Cardano has the potential to achieve significant growth in the future.

Mr. Teacher