TLDR
- Cardano (ADA) is consolidating within a descending triangle pattern with support at around $0.6292 according to analyst Thomas Anderson
- Whales have sold over 100 million ADA tokens in recent weeks, potentially creating bearish pressure
- ADA is trading in a descending channel with key support at $0.63 and resistance at $0.74
- A break below $0.63 support could lead to a further decline toward $0.54 (approximately 15% drop)
- Despite bearish signals, the MACD indicator shows some positive momentum in the short term
Cardano (ADA) is showing mixed signals as it hovers around a critical support level of $0.63. The cryptocurrency has formed a descending triangle pattern on the charts, which typically precedes a major price movement. This comes as whale investors have reportedly sold more than 100 million ADA tokens in recent weeks.
According to analyst Thomas Anderson, ADA is consolidating near the lower boundary of this triangle at approximately $0.6292, a level that has provided support in recent trading sessions. The price action suggests a potential breakout scenario could be forming.
On the 4-hour chart, Cardano appears to be attempting a recovery by forming higher lows, which indicates growing bullish momentum. However, the cryptocurrency still faces pressure as it trades below the 200-period moving average.
Whale Activity Creates Market Uncertainty
Data shared by analyst Ali Martinez reveals that whales have offloaded more than 100 million ADA units during the past few weeks. This substantial sell-off has created uncertainties about Cardano’s price direction.
Whales have offloaded over 100 million #Cardano $ADA in the past week! pic.twitter.com/kdCl1CXmEE
— Ali (@ali_charts) April 15, 2025
Large-scale selling by major holders typically reduces market liquidity and can push cryptocurrency prices downward. This movement suggests a shift in sentiment, with many investors taking a more cautious approach to Cardano.
When whales sell large quantities alongside retail investor participation, prices can decline rapidly. This selling pressure adds to the challenges Cardano faces in maintaining its support levels.
Market observers note that such whale activities often lead to increased volatility as other investors react to the exit of major players from their positions.
Technical Analysis Points to Key Support and Resistance Levels
Cardano’s price has been confined to a descending channel for several weeks, according to Martinez. This established range shows key support at $0.63 and resistance near $0.74.
#Cardano $ADA is trading within a descending channel, with key support at $0.63. A break below this level could trigger a downswing toward $0.54. pic.twitter.com/gZxxJnCkNi
— Ali (@ali_charts) April 14, 2025
If the $0.63 support level holds, Cardano may experience periods of consolidation before approaching the $0.74 resistance. However, a break below this support could signal further correction in the market.
The $0.6974 resistance level is crucial in determining ADA’s next move. A successful breakout above this level could confirm a bullish outlook for the cryptocurrency.
Technical indicators present a mixed picture. The Stochastic RSI reading shows overbought conditions at 85.19 (blue) and 89.19 (orange), suggesting a market consolidation or correction may be due.
In contrast, Cardano’s Moving Average Convergence Divergence (MACD) indicator displays a positive histogram. The position of the MACD line above the signal line indicates some bullish momentum, though the diminishing distance between these lines suggests an upcoming trend adjustment.
Potential Price Targets in Both Directions
If bulls manage to defend the lower support level and trading volume increases, ADA might break out to the upside, pushing past resistance and completing the pattern. This would present a more optimistic scenario for Cardano holders.
On the downside, if Cardano fails to maintain support at $0.6292, it could trigger a deeper correction. Analyst Ali Martinez suggests that ADA may target $0.54 as its next price level if it drops below the current support point at $0.63. This represents a potential downside of approximately 15%.
Such a breakdown could lead to accelerated selling as stop-loss orders trigger and panic selling amplifies the downward movement. In this case, focus would shift to support areas around $0.60 and $0.58, which would be crucial for maintaining any uptrend.
The loss of the $0.63 support level could also change market sentiment substantially, potentially slowing down any bullish momentum for the altcoin.
Long-term analysis raises some concerns about Cardano’s price trajectory. Some analysts note that ADA has maintained a narrow trading range between $0.55 to $0.60 during the past 1500 days while failing to reach the $1 price level. This ongoing resistance raises questions about the sustainability of any Cardano rally.
Despite reaching intraday highs near $0.6517, Cardano continues to face selling pressure amid broader market volatility. The cryptocurrency has dropped 2.66% in the last 24 hours.
Whether bulls can push prices above key resistance levels or bears will drive ADA below expected support levels remains to be seen. Traders and investors are closely watching these key technical levels for signs of Cardano’s next major move.
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
