TLDR
- Whales have accumulated over 180 million ADA tokens in the past week
- Cardano is currently trading around $0.72, facing resistance at $0.75
- ADA recently rebounded from a key support zone at $0.65
- Open Interest decreased by 11.52% to $738.11 million, signaling market caution
- Technical indicators show neutral conditions with moderate user engagement
Cardano, the popular cryptocurrency known for its scientific approach to blockchain development, has been stuck in a price range between $0.65 and $0.75 despite increased whale activity. With large holders accumulating over 180 million ADA tokens in the past week, many investors are wondering when the next big price move might happen.
At the time of writing, ADA is trading at $0.7217, showing a 2.93% decline over the past 24 hours. The current price action comes after a rebound from the important $0.65 support level, suggesting this zone provides stability for the token.
The Relative Strength Index (RSI) sits at 47.34, indicating neutral market conditions. This means the cryptocurrency is neither overbought nor oversold at present, leaving traders uncertain about the next direction.
Cardano’s daily active addresses show steady but moderate user engagement. With about 31,005 active addresses recorded, the network maintains consistent participation but lacks the sharp increase that often accompanies bullish trends.
The moderate activity suggests users remain cautiously optimistic about ADA’s prospects. If this engagement remains stable while whales continue their accumulation strategy, ADA could see gradual upward movement over time.
Looking at the liquidation heatmap provides insight into potential volatility zones. The $0.72 to $0.75 range has experienced heavy liquidation activity, making this zone particularly important for traders to watch.
Price needs to push through nearby resistance to start a rally
This resistance area could either halt upward momentum or trigger a wave of liquidations if broken. However, if ADA manages to push through this range, it might begin a rally supported by the whale accumulation patterns observed over the past week.
Adding to the cautious outlook, Cardano’s Open Interest has decreased by 11.52% to $738.11 million. This decline indicates that many market participants are stepping back from taking positions, possibly due to uncertainty about price direction.
As fewer traders take leveraged positions in the market, this caution may prevent ADA from making strong moves either up or down. Until market confidence builds, consolidation seems more likely than sharp price swings.
Technical analysis shows a short-term bearish trend line forming with resistance at $0.720 on the hourly chart. The price is currently trading below both $0.750 and the 100-hourly simple moving average, typically considered bearish signals by traders.
On the upside, ADA faces resistance near $0.750, which coincides with the 61.8% Fibonacci retracement level of the recent downward move from $0.8169 to $0.6495. Additional resistance levels sit at $0.775 and $0.80.
If Cardano breaks above the $0.80 level with a clear close, it could start a strong rally potentially reaching toward $0.950 or even the psychologically important $1.00 mark. This would represent a substantial gain from current levels.
However, if the price fails to climb above the $0.750 resistance, another decline may follow. Immediate support can be found near $0.7150, with the next major support at $0.6880.
A break below $0.6880 could open the door for a test of the recent low at $0.650. Should this level fail to hold, the next support zone would be around $0.6320, where buyers might step in more aggressively.
The hourly MACD (Moving Average Convergence Divergence) indicator for ADA shows losing momentum in the bullish zone, while the hourly RSI sits below the 50 level. Both suggest limited upward momentum in the short term.
The short-term outlook remains uncertain
While whale activity has increased buying pressure on Cardano, the short-term outlook remains uncertain. The bounce from support is encouraging, but neutral indicators and declining Open Interest point to limited momentum for now.
Without stronger buying pressure from retail investors or improved market sentiment, ADA may continue trading within its established range for the coming days or weeks.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
