Cardano (ADA) has outperformed the broader crypto market today, rising by over 4% in the last 24 hours and by approximately 15% in a week to reach $0.376 on Sept. 24. Key factors behind ADA’s rally today include Charles Hoskinson’s upcoming meeting with Argentine president Javier Milei and whale accumulation.
Hoskinson’s upcoming meeting with Milei boosts ADA adoption scenario
ADA is rallying due to optimism surrounding Charles Hoskinson’s upcoming meeting with Argentine President Javier Milei during the Tech Forum Argentina on Oct. 19.
ADA/USD daily price chart. Source: TradingView
ADA price has jumped by over 9% since the news, including today’s gains, showing that its traders are speculating bullish on the Hoskinson-Milei meeting, especially given Milei’s pro-crypto stance.
Rumors are circulating about Milei’s intentions to launch a central bank digital currency in Argentina.
Argentina has embraced Cardano “with open arms,” according to Hoskinson. In June 2024, for instance, the Cardano Foundation forged another partnership to promote local blockchain adoption.
One of its earliest development partners, AtixLabs, originated there and played a key role in Cardano’s early growth.
Top Cardano traders are accumulating ADA
ADA’s rise this week follows a period of rising accumulation by its richest investors, also known as “whales.“
Notably, the number of entities holding at least 1 billion ADA tokens (royal blue) has increased over the past months. Similarly, those with a 100 million—1 billion ADA balance (green) have also increased in the same period.
ADA distribution among whales. Source: Santiment
Conversely, the 10 million—100 million ADA balance cohort (black) has witnessed a decline in its entity count, indicating that traders in this group accumulated Cardano tokens to become part of the 100 million—1 billion ADA balance cohort.
The accumulation spree appears around the Chang Hard Fork, which introduced a governance mechanism on the Cardano blockchain on Sept. 2.
ADA price enters falling wedge breakout stage
ADA’s recent gains are part of a falling wedge breakout, suggesting that the token may continue rallying further into October and the coming months.
A falling wedge forms when the price trends lower inside a descending channel range defined by two converging, falling trendlines. As a rule of technical analysis, the pattern resolves when the price breaks above the upper trendline and rises by as much as the maximum distance between the upper and lower trendlines.
ADA/USD three-day price chart. Source: TradingView
Applying the same technical rule on the ADA/USD chart brings its upside target for 2024 to around $0.638, up 70% from the current price levels.
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Conversely, the bullish outlook will risk invalidation if the price returns to the wedge range, increasing the possibility toward the pattern’s apex point at around $0.63 instead.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.