According to IntoTheBlock data, Cardano (ADA) has seen a 264% surge in netflows this week. The large holder netflow metric provides an idea of the change in whales' position in a specific time frame.
A surge in netflows, as is happening with Cardano, might be interpreted as an accumulation from large players, or whales. This is the case as whales prefer to accumulate more during periods of dips or prolonged consolidation.
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While the 264% surge in large holder netflows might be a positive indicator, it does not guarantee an immediate price increase. However, if the trend continues and ADA inflows remain strong, the price may begin to reflect rising demand. Positive netflow trends may presage price rises in major cryptocurrencies, as sustained accumulation may result in buying pressure, driving prices higher.
ADA price action
At the time of writing, ADA was down 3.2% in the last 24 hours to $0.344.
ADA declined to enter into a consolidation phase in April. With ADA range trading persisting for months, many traders are now looking for signs of a breakout. A strong move above key resistance levels could pave the way for a potential rally, especially if investor sentiment continues to shift in favor of Cardano.
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For ADA to break out of its current trading range, analysts are watching several important price levels. The daily moving averages 50 and 200 are at $0.354 and $0.40, respectively, critical resistance levels that ADA needs to surpass to confirm a bullish breakout in the short term. On the downside, ADA’s price needs to hold above the $0.27 and $0.3 support levels to prevent further declines.
A breakout above the aforementioned key resistance could trigger a fresh wave of buying, especially if the surge in netflows continues.
