Cardano (ADA) has recently faced difficulties in overcoming a key barrier, despite support from large investors and improving market conditions.
The price of ADA remains below critical resistance levels, but given that whales are accumulating significant volumes of ADA, the potential for the altcoin to break out looks promising. If market conditions continue to improve, Cardano may see a positive shift in price momentum.
Large Cardano holders are optimistic
Whale activity was strong in April, when addresses holding between 10 million and 100 million ADA purchased over 420 million ADA, worth approximately $289 million, increasing their assets to 12.89 billion ADA from 12.47 billion ADA. This continuous accumulation by the largest Cardano holders is a significant indicator of confidence.
Whales play a key role in potential price movements of ADA, and their ongoing accumulation indicates faith in the long-term value of the asset. Large-scale accumulation could help shift market sentiment in a positive direction. As the most influential ADA holders increase their positions, the likelihood of price growth rises. The overall momentum of Cardano shows signs of improvement, especially with technical indicators such as the Relative Strength Index (RSI). Currently, the RSI is at nearly a two-month high and is in the positive zone above the neutral mark of 50.0. This indicates an increasing bullish momentum, driven by both the accumulation of ADA by whales and broader market conditions.
Improving market conditions and a strong RSI value suggest that the price of Cardano may soon experience significant growth. This technical strength, supported by whale activity, sets the stage for ADA to break through its key resistance levels, potentially leading to broader adoption and price growth. The price of ADA is targeting a breakout.
The price of Cardano is currently $0.69, slightly below the support level of $0.70, which it held earlier this week. The altcoin has dipped slightly after a failed attempt to break the resistance level at $0.74. The inability to overcome this level keeps ADA in a narrow range, although a breakout remains possible if the market continues to improve.
The resistance level at $0.74 has been a key barrier for ADA for over five weeks. However, considering that whales continue to accumulate and macroeconomic indicators show strength, Cardano may soon break above $0.74 and potentially rise to $0.80. A successful breakout at $0.74 would signal the beginning of a more sustainable bullish trend. If ADA cannot maintain its position above the support level at $0.66, confidence among whales may begin to wane. Further declines to $0.60 would harm the bullish outlook, potentially leading to a deeper correction. Such a move would negate positive sentiment and postpone any potential for ADA to reach higher price targets.#BinanceAlphaAlert #BinanceSquare #Write2Earn #Binance #crypto $ADA