Cardano (ADA) price has struggled to regain bullish momentum since August, preventing any significant recovery. The altcoin remains stuck below key resistance levels, with its failure to breach the $0.37 barrier likely stalling any potential 20% rally.
Despite minor upward movements, ADA has not been able to build the momentum needed to sustain a larger recovery.
Crucial Cardano Investors Turn Bearish
Typically seen as key market movers, Whales have turned pessimistic about Cardano’s price outlook. Addresses holding between 10 million and 100 million ADA have offloaded over 320 million ADA in the past five days.
This supply, valued at more than $112 million, indicates that large investors are no longer expecting short-term profits. Instead, they are opting to sell off their holdings, potentially signaling a lack of confidence in Cardano’s ability to rally in the near future.
This significant whale selling suggests that larger investors are preparing for more downside or at least a period of consolidation. Their actions may put further pressure on ADA’s price, preventing any immediate upward breakout from the current trading range.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
Cardano’s macro momentum also seems to reflect declining optimism among long-term holders. The Mean Coin Age metric, which tracks the average age of coins on the blockchain, has failed to show a consistent uptick. A rising Mean Coin Age is typically seen as a sign of confidence, indicating that long-term holders (LTHs) are holding onto their assets rather than moving or selling them.
At the moment, however, the metric suggests that LTHs are losing faith in ADA’s short-term potential, possibly moving their holdings around or selling off. This indicates that Cardano’s macro momentum is weakening, further dimming the prospects of a quick recovery or rally.
ADA Price Prediction: Looking Ahead
Cardano’s price recently rose by 7.5%, currently trading at $0.35. ADA is now just 7% away from the crucial $0.37 resistance, which has acted as a ceiling since the crash in late July. Breaching this level would be essential for ADA to recover from its recent losses.
However, given the ongoing whale sell-offs and weakening macro momentum, ADA is likely to fail to break above the $0.37 barrier. Instead, the altcoin may consolidate below this level, potentially testing $0.31 as the lower limit of its current trading range.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
If retail investors step in to absorb the selling pressure and long-term holders regain confidence, Cardano could still break through the $0.37 resistance. This would set the stage for a 20% rally, pushing ADA to $0.42 and invalidating the bearish outlook.
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