Cardano (ADA) bounces back strongly from important support: How far will the uptrend last?

In the past two weeks, Cardano "whales" (ADA) have quietly accumulated nearly 150 million ADA – a move that reflects a growing confidence in the long-term prospects of this altcoin. Notably, this large-scale accumulation occurs just as retail investors become more cautious, adding to the intriguing market dynamics.

As of the time of writing, ADA is fluctuating around the 0.92 USD mark and continues to hold important support levels. In fact, whenever "whale" money floods in, the market often prepares for a significant shift. Therefore, many traders are hopeful for a stronger breakout on the price chart.

The important question now is whether this massive capital flow can offset the overall market uncertainty and drive ADA beyond key resistance levels.

Cardano forms a bullish structure

Cardano (ADA) has formed a clear uptrend since July 2, with a series of higher highs and higher lows showing that buying pressure is increasingly dominant. The area around 0.84 USD currently acts as a strong support, while 0.97 USD has become an important resistance level to conquer. If this level is surpassed, ADA could confirm a continuing upward trend with a potential target towards 1.14 USD.

Notably, the MACD indicator has flipped positively, invalidating the bearish cross signal and is rising again – indicating that the recent correction may have ended. At the same time, the RSI also reinforces the bullish outlook as it remains above the neutral threshold of 50 and continues to rise. The combination of these signals suggests that the most likely scenario for ADA at this stage is upward.

Daily ADA/USDT Chart | Source: TradingView## Stock-to-flow ratio spikes: Increasing scarcity signal?

The stock-to-flow ratio of Cardano has just recorded an impressive breakout, surpassing the 400 mark – the highest level in many months. This is an index that compares the amount of ADA in circulation with the newly issued supply, where an increasing value often reflects an increasingly evident scarcity.

In the past, periods of tightening supply have often created conditions for asset values to soar if demand remains stable. However, the market still needs a confirming factor: whether the accumulation momentum will actually transform into long-term buying pressure. Because without continuing demand, even signals of scarcity may struggle to push prices up significantly.

The stock-to-flow ratio of Cardano | Source: SantimentTherefore, the upward momentum of the stock-to-flow index will serve as an important "guiding star", determining whether ADA can continue to reinforce the story of sustainable growth in the long term or not.

Outlook: Positive but needs confirmation

The outlook for Cardano is gradually leaning towards a bullish trend as whales are accumulating strongly, scarcity signals are increasing, and the bulls are gaining dominance.

However, sustainability can only be ensured if ADA breaks through the resistance of 0.97 USD. If successful, Cardano could completely advance to the mark of 1.14 USD and beyond.

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