Whale Cardano buys dip, why is this expert optimistic about ADA?

Crypto analyst Dan Gambardello has studied the accumulation patterns of whales on Ethereum and Cardano in the context of the market being in the consolidation phase.

He not only mentioned potential price reduction targets but also maintains an optimistic long-term view, based on cash flow from institutions and the historical chart patterns of both cryptocurrencies.

Whales ETH accumulating billions of dollars despite the prolonged resistance zone

According to Dan Gambardello, ETH whales are actively buying in large volumes, despite many weeks of prices being stuck at the resistance area according to the multi-year triangle pattern.

On Sunday alone, whales accumulated $2.5 billion worth of ETH — marking the largest inflow in a single day since 2018, amidst ETH prices moving sideways in a pattern similar to 2017.

Interest from institutions is still increasing through ETF channels, as Ethereum funds are recording weekly inflows increasing fivefold, totaling 530 million dollars.

Whales purchased $435 million in Ether through OTC transactions, while inflows into ETFs on June 17 reached $21.4 million, indicating that institutions are still maintaining their Accumulation strategy.

Gambardello commented that the price action of Ethereum is in a tense state, facing persistent resistance at the yellow bottom trendline – part of a large triangle pattern that has been extending for many years.

Although institutional money continues to flow in, long wicks and strong selling pressure frequently appear at key technical levels, indicating that the market is being constrained in a consolidation phase lasting about six weeks.

The analyst also cited data from Ethereum's risk model, which reveals price compression signals similar to the phase in 2017 – a time when prolonged accumulation phases paved the way for parabolic price increases.

Currently, although the market shows signs of decreased volatility, the accumulation activity by whales is still happening regularly, reflecting the expectations of institutions about a bullish trend in the future, despite short-term instability.

Cardano targets a drop to $0.50 before potentially breaking out to $2

Gambardello believes that the potential price target for ADA could be around the $0.5 mark. However, he also warns that in unpredictable market conditions, a deeper drop to $0.4 could completely happen.

The analyst notes the red candle on the current weekly chart, but still maintains a perspective based on historical trends and previous consolidation phases.

Currently, ADA is trading in a descending wedge pattern – a technical structure that often signals continuation or reversal after consolidation. Gambardello pays particular attention to the lower Fibonacci zone, which has been tested during the bottoming phases of the COVID period.

If selling pressure continues to increase amid global instability, the lower range of this consolidation phase may continue to be tested – opening up the risk of a deeper decline for ADA in the short term.

Cardano price analysis | Source: GambardelloGambardello sets a long-term target for ADA to surpass the $2 mark, despite negative short-term risks. He maintains an optimistic outlook based on technical factors and the historical context of the market.

Currently, the 20-week moving average is around $0.71 – nearly $0.10 higher than the current price of ADA. The analyst notes that the moving averages are tightly compressed in this timeframe, which is markedly different from the previous cycle, indicating the potential for a major turning point.

According to Gambardello, if ADA can break through the important resistance zone from $0.65 to $0.71, a positive macro environment will open up – facilitating the target of $2.

He also pointed out that the current descending wedge pattern reflects a structure that has appeared before strong breakouts in the past. Prolonged accumulation phases like the current one are often a precursor to explosive price increases, as seen in previous bullish cycles of ADA.

The similarity between the present and historical consolidation patterns suggests that ADA is preparing for a leap – if the key resistance area is decisively broken.

Analyst maintains bullish target despite geopolitical market pressures

Gambardello still maintains a long-term price target for Ethereum at $4,000 and Cardano at $2,000, despite short-term geopolitical tensions in the Middle East and negative market sentiment.

He predicts that in the short term, the crypto market may face a wave of "capitulation due to fear" – a panic phase that often appears before strong reversals. However, the analyst still maintains a positive stance on the long-term outlook.

For ETH, he believes that a breakout from the current consolidation phase could quickly push the price up to $3,500 – an important stepping stone towards the main target of $4,000, coinciding with the previous swing high and potentially triggering a new growth cycle.

However, he also warns that the daily chart of Ethereum is forming an expanding wedge pattern upwards – a signal that could lead to a drop towards the 1,800 dollar range if the market experiences a crash. This area is close to the previous Fibonacci channel, spanning from 1,900 down to the 1,600–1,700 dollar mark.

Gambardello emphasizes the importance of discussing price increase targets even during periods of instability, as he believes that the most pessimistic sentiment often arises just before the market reverses.

Minh Anh