TLDR
- Cardano (ADA) trading above $0.67, showing slight recovery with 2.2% gain in 24 hours
- Whale wallets holding 1-10 million ADA dropped to lowest level since February 2023
- Average Directional Index (ADX) surged to 40.19, confirming strong bearish trend
- Critical support at $0.64 being retested, with next support at $0.58 if broken
- Despite bearish signals, Cardano saw 500% week-over-week rise in investment inflows
Cardano (ADA) is currently trading above $0.67, showing a minor recovery with a 2.2% gain over the past 24 hours. This small upward movement comes after a challenging week where the price fell by 10%, continuing a broader downtrend that has kept ADA trading below the $1 mark for nearly a month.
The cryptocurrency is positioned between immediate resistance at $0.69 and key support at $0.64. Technical indicators are showing strong bearish momentum with the 20-day EMA trending downward at around $0.71.
The RSI remains in negative territory, giving bears a slight advantage in the near term. If ADA closes below the uptrend line currently being tested, it could trigger a slide toward the $0.50 level.
Whale wallets holding between 1 million and 10 million ADA have decreased to 2,406, down from 2,421 just four days ago. This drop brings the whale count to its lowest level since February 2023, suggesting reduced confidence among large holders.
This decline in whale holdings is seen as a warning sign by market watchers. Changes in whale behavior often precede broader market trends, and their exit could add more downward pressure on ADA’s price.
Technical Indicators Confirm Downtrend Strength
Cardano’s Average Directional Index (ADX) has jumped from 15.83 to 40.19 in just four days. This steep increase confirms that a powerful bearish trend is developing and gaining strength.
The ADX measures trend strength regardless of direction, with readings above 25 indicating a strong trend. Cardano’s ADX climbing above 40 signals that the current downtrend is not only active but intensifying.
This technical indicator suggests further downside pressure unless bulls can create a significant momentum shift. ADA recently retested the critical support level at $0.64 and managed to hold, showing that buyers are still defending this zone.
This support has become a key reference point for ADA’s short-term outlook. If the current decline reverses and positive momentum builds, the next target would be resistance at $0.69.
A breakout above this level could open the path for a push toward $0.77. With sustained momentum, ADA could potentially aim for $1.02, marking a return above the $1 level for the first time since early March.
Mixed Signals: Bearish Technicals vs. Bullish Inflows
Despite the bearish technical indicators, not all news is negative for Cardano. According to a CoinShares analysis, Cardano has seen a 500% week-over-week increase in inflows into digital asset investment products.
With a total influx of $0.6 million, this surge represents a broader trend of funds returning to altcoins. This development suggests a possible market recovery and renewed investor interest in ADA.
Some analysts remain optimistic about Cardano’s future prospects. One unnamed crypto expert projects a potential 900% increase for ADA, possibly reaching $3.80 or even $5.60 by 2025.
A key factor driving this bullish forecast is the prospect of listing Ripple’s $RLUSD stablecoin on the Cardano network. This integration could bring much-needed liquidity to the Cardano ecosystem, making it more attractive to investors.
Cardano founder Charles Hoskinson has confirmed ongoing discussions with Ripple about this potential partnership. Hoskinson has also hinted at possible interfaces with other major blockchain ecosystems including Bitcoin, Dogecoin, and Chainlink.
These developments could expand Cardano’s utility and adoption in the coming months. However, the immediate technical picture remains challenging as the price continues to face downward pressure.
If the $0.64 support fails on another test, it would indicate weakening buyer conviction. A breakdown below this level would likely send ADA toward the next support at $0.58, confirming a continuation of the downtrend.
For the moment, Cardano’s price action appears caught between bearish technical indicators and potentially bullish fundamental developments. The next few days will be crucial in determining which force prevails in the short term.
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