Cardano’s price has recently experienced volatility, largely influenced by its inclusion in Trump’s US Crypto Strategic Reserve. This news initially spurred bullish activity, with investors jumping into ADA, but the excitement was short-lived.
As the price dipped, market sentiment began to shift, and whales reacted accordingly.
Cardano Whales Are Moving Quickly
Over the past 24 hours, whale addresses holding between 100 million and 1 billion ADA have moved to sell about 160 million ADA worth $147 million. This selling pressure comes as Cardano’s price faced a dip over the last 48 hours.
The actions of these large holders reflect a level of uncertainty, as they seem to be hedging against potential further price drops. These whales, who have significant stakes in the network, appear hesitant about Cardano’s immediate future, potentially signaling broader market apprehension.
Despite the initial optimism following Cardano’s involvement in Trump’s crypto reserve plan, when these whales acquired $404 million worth of ADA in a day, these actions highlight that whales are unsure whether the rally will continue. Given their influence on the market, their decisions are critical in shaping the short-term outlook for ADA.
Cardano’s broader momentum has also shown signs of slowing down. The active addresses of ADA holders, a crucial indicator of market participation, have fallen back to an average of 33,000 after reaching a high of 70,000 this weekend.
This sharp decline in transaction activity aligns with the actions of the whales and indicates a decrease in overall market confidence. When active addresses drop, it often signals that investors are stepping back to minimize risk or await clearer signals for a price reversal.
ADA Price Needs A Push
Currently, Cardano is trading at $0.92, showing an 8% increase in the last 24 hours after noting a 24% decline on Monday. However, it remains under the crucial barrier of $0.99, which has acted as a significant resistance level.
ADA needs to break this barrier to continue its upward trajectory beyond $1.00. Without this breakout, Cardano may struggle to maintain its current price.
If the selling pressure continues and ADA fails to breach $0.99, it could test the support level of $0.85. A further decline might push ADA down to $0.77 or even as low as $0.70. This would solidify the bearish outlook and potentially trigger a more extended period of consolidation.
Alternatively, if the selling activity halts and investors hold their positions, Cardano may get a chance to push through the $0.99 resistance. A successful flip of $1.01 into support would invalidate the bearish scenario and open the door for a more substantial rally, potentially allowing ADA to regain bullish momentum.
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