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Cardano (ADA)the ninth largest cryptocurrency by market cap, reports significant activity over the past 48 hours. according to onWhales purchased more than 20 million Cardanos during this period.
Although the exact reason behind these moves remains unknown, there may be some possible explanations.
Recent progress on Cardano's decentralized governance framework, including CIP-1694, may have boosted investor sentiment about the project's long-term viability.
On December 21, Intersect, a member-based organization for the Cardano ecosystem, announced that the Plomin governance procedure for a hard fork on the mainnet had been submitted for ratification. Upgrading Plomin will unlock Cardano's ultimate on-chain governance features.
This action marks the end of the beginning for on-chain governance. If enacted, it would enable full management as defined in CIP-1694 of the mainnet, ending the technical bootstrap phase. Given this, the Plomin hard fork governance procedure on the mainnet could be ratified and enacted after any time limits between January 4 and 29, 2025.
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As 2024 draws to a close, expectations remain in the final days of a historic year for most digital assets. This may encourage whales to accumulate ADA in anticipation of higher prices. Also, with the price of ADA trading below $1, whales may see this as an opportunity to accumulate at a discount.
ADA price action
The broader cryptocurrency market has shown signs of recovery, with several altcoins turning green just two days before the end of 2024. At the time of writing, ADA is up 1.75% in the past 24 hours to $0.887.
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Cardano It recovered from the lows of $0.85 in the Friday session, after two days of losses. The bounce was met with resistance around $0.91, ahead of the 50 simple moving average at $0.949.
If ADA advances beyond these two key levels, it may target $1, breaking out of its current range to start a new uptrend.
A rise above $1 could trigger a bear trap, paving the way for short covering to rise to $1.20. On the other hand, if the price of ADA declines and drops below $0.76, this could signal the beginning of a downward movement. ADA may then drop to $0.50.
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