Cardano’s weekly price gain boosts investor interest but remains overshadowed by longer-term losses and whale sell-offs.
Technical indicators show bullish signals, with a falling wedge and rising momentum suggesting a potential breakout near $0.6053.
Cardano’s enterprise push through the Reeve platform signals a growing focus on institutional adoption and blockchain infrastructure.
Cardano (ADA) climbed 6.6% over the past week to trade at $0.58, bringing its market cap above $21 billion. Despite this short-term rise, the token remains under pressure, still down 11.9% over the last month and nearly 50% off its $1 high from March 3. ADA has made repeated attempts to reclaim that level, but none have sustained upward momentum.
The increased market focus is currently on the level of resistance ($0.70). A break above this level would be an indication of a more stiff run toward the dollar 1 on the condition that market liquidity and general conditions favor further rally. There is a general relaxation in the crypto industry going into the third quarter, which is also a booster to the speculative nature over the price movement of ADA.
New Platform Reeve Adds to Cardano’s Enterprise Push
On July 8, the Cardano Foundation announced Reeve, an institutional-grade financial reporting solution built on the Cardano blockchain. Reeve enables on-chain publication of tamper-proof financial data and integrates with traditional accounting systems. This move signals a broader strategic shift for Cardano, which is expanding beyond its traditional DeFi and staking focus to attract enterprise-level users.
From a technical standpoint, ADA has formed a falling wedge pattern on the daily chart. This formation typically suggests a potential reversal. Trend indicators like MACD and RSI are also making higher highs, showing an increase in the purchase interest. The initial technical indicator of a further rise would be to break out above 0.6053, which is the top limit of the wedge. The second line of resistance is represented by the price of 0.73, which corresponds to the growth of 25.8%.
The Whale Activity Brings Headwinds to the Price Increase
In spite of good technical indicators, whale influence is pressuring the short-term direction of ADA. According to Santiment data, the large holders sold more than 170 million ADA over the last two weeks. This decline in the exposure of whales indicates low confidence among major investors, which may limit positive movement.
ADA should not allow its value below $0.54 to sustain the bullish position. A fall below the latter would move prices back to recent losses and perhaps to a retest of both the $0.50 level and the base of the wedge at the $0.44 mark, where buyers have stepped up in the past.
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