Key Insights
- Cardano price has dropped by 25% in a week.
- This dip has grabbed investors’ attention and may trigger a bullish move.
- ADA price has been in a correction phase since December.
Cardano (ADA) price displayed a strong bull run in November. Amid this bullish move, investors have grabbed a 240% gain. This bullish move was interrupted near the $1.25, and the momentum was shifted to bears in December.
Since December, ADA price has been falling in a downward channel. At press time, the token was holding on the lower descending trendline.
The cryptocurrency has seen significant losses over the past week. However, Cardano price continued to trade below $0.60. Whales are still amassed Millions of ADA tokens, which raises market expectations for potential future movements.
Cardano Price Sees Whale Accumulations, Indicating Potential Market Trend Reversals
Interestingly, major Cardano token owners keep fortifying their holdings despite the continuous price decline. Per on-chain data analyzed by analyst Ali Martinez, whales have acquired over 130 million ADA tokens.
This they did in the past 72 hours. Whale investments boosted the total number of ADA tokens owned from 12.38 billion to 12.51 billion.
Despite the market’s general bearish trends, large-scale investor confidence is still rising due to whale investments. Whale accumulations that surpass a particular threshold have historically signaled future reversals in market trends.
ADA price is still encountering significant resistance. Moving ahead, it’s unclear how recent whale purchases have affected its downward trajectory.
Is Correction Phase Over in Cardano Price?
Cardano price was trading at $0.64 at press time, which has surged by 7.10% over the past 24 hours. The market capitalization was $22.54 Billion, and the 24-hour trading volume was around $746.78 Million.
The technical chart showed strong selling pressure, and the ADA price has slipped below the key moving averages. This bearish trend seems to be calmed down near a support zone of $0.62.
Suppose the price holds the descending channel; buyers might show interest. A decent bullish move can be seen if Cardano price forms any bullish candlestick in the support zone. Once the token surpasses the key moving averages, buyers might dominate further.
Conversely, sellers may dominate ahead if the ADA price remains below the key moving averages. Losing the support zone of $0.62 could spread fear among buyers. It might be difficult for buyers to bounce back.
RSI has developed a bullish divergence amid this correction phase. This scenario could attract investors and can perform positively for the next few days.
Investors Preferred to Buy Dip: What’s Next?
Cardano price has experienced a notable decline of 25% over the past week. Amid this Cardano news, the current accumulation of ADA tokens by whales suggests a potential shift in market dynamics. This occurred despite ongoing selling pressure and significant resistance levels.
The bullish divergence in the RSI may indicate an opportunity for a trend reversal. This might occur if buyers can maintain support around the $0.62 mark.
Suppose ADA price breaks above the key moving averages; investor confidence could lead to a solid bullish move. This may further signal a recovery phase for the token. However, a continued downturn may create buyer challenges if the price fails to hold these levels.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Mahsa Rezaei is a forward-thinking crypto journalist based in Tehran with a strong background in computer science and finance. Specializing in blockchain technology and its impact on Iran’s economic reforms, her investigative articles and in-depth analyses are widely read by tech enthusiasts and policy makers alike.