Cardano Eyes Breakout as Whales Buy 180M ADA, SEC ETF Verdict Looms

• Whale accumulation of 180M ADA signals strong investor confidence in Cardano’s future.
• ADA faces resistance at $0.82 as community backing and whale activity intensify.
• SEC ruling on spot ADA ETF could determine next major price move for Cardano.

Cardano (ADA) has grabbed the spotlight following an impressive surge in whale accumulation, paired with renewed community backing and an approaching regulatory decision. Over the past week, large-scale investors commonly referred to as whales have amassed over 180 million ADA, signaling increased confidence in the asset’s future trajectory. 

Whales Signal Confidence with Strategic Accumulation

Crypto analyst Ali Martinez reported that whales holding between 10 million and 100 million ADA significantly increased their holdings over the past seven days. This surge in accumulation occurred as ADA’s price climbed from around $0.67 to $0.75, reflecting growing optimism among large holders. The influx of whale activity is seen as a strong bullish indicator, especially since similar trends have historically coincided with price uptrends.

Martinez highlighted that the $0.82 level poses a significant resistance, while support rests near $0.72. If accumulation continues at the current pace, ADA could potentially break above this resistance. 

Conversely, if whales slow down or start distributing, prices may retrace toward the support zone. Regardless, the accumulation trend adds a bullish undertone to ADA’s recent movement.

Community Support and Sentiment Remain Strong

Besides whale behavior, ADA’s strong community support is reinforcing its market presence. According to TapTools, Cardano ranked second on CoinMarketCap’s community support chart, trailing only Bitcoin. 

Out of 4,844 voters, 87% expressed a bullish outlook for ADA just behind Bitcoin’s 87.3% from over 9,400 votes. This overwhelming support adds another layer of positive sentiment.

All Eyes on the SEC Decision

Looking ahead, the SEC is set to rule on Grayscale’s application for a spot ADA ETF on May 29. This decision, previously delayed by 45 days from its April deadline, could have a major impact on ADA’s price direction. 

A favorable ruling may trigger a new wave of institutional interest and push ADA above resistance. However, an unfavorable outcome could stall current momentum.

Technical and Market Outlook

At the time of writing, ADA trades at $0.7522, showing a modest 0.18% gain in 24 hours. Despite a 5.66% weekly drop, the token remains resilient with a market cap of over $27 billion. Trading volume has stayed healthy at over $617 million, indicating sustained investor interest.

On the technical side, ADA shows signs of mild bullish momentum. The MACD line remains above the signal line, though it stays close to the zero mark, indicating a cautious phase. Additionally, the Relative Strength Index (RSI) hovers at 56.98, reflecting a balanced market with no signs of overbought or oversold conditions.