Cardano (ADA) is struggling to overcome a significant resistance level, despite receiving support from major investors and improving market conditions.
ADA price remains below key resistance levels, but with whales accumulating large amounts, the chances of breakout for this altcoin seem promising. If market conditions continue to be favorable, Cardano could witness a positive shift in price momentum.
ADA whales show optimism
Whale activity was strong in April, with wallets holding between 10 million and 100 million ADA purchasing over 420 million ADA, equivalent to about $289 million. The total amount held by this group has increased from 12.47 billion to 12.89 billion ADA. The continuous accumulation by the largest investor group in Cardano is an important indicator showing strong confidence in the project.
Whales play a crucial role in potential price movements of ADA and their continued accumulation indicates they believe in the long-term value of the asset. Large-scale buying activity from this group could help reverse market sentiment positively. As the most influential ADA holders increase their positions, the chances of a price surge will also be higher.
Whale holdings of Cardano | Source: Santiment
The overall momentum of Cardano is showing signs of improvement, especially when considering technical indicators such as the Relative Strength Index (RSI). Currently, the RSI is at its highest in nearly two months and is in the positive zone, above the neutral threshold of 50. This suggests that the bullish trend is strengthening, driven by whale accumulation of ADA and overall market conditions.
Improved market conditions along with a strong RSI indicate that ADA price could soon see a significant increase. This technical strength (supported by whale activity) is laying the groundwork for Cardano's native altcoin to break through important resistance levels, potentially leading to wider acceptance and increased value in the future.
RSI of Cardano | Source: TradingView
ADA price aims for breakout
Currently, the ADA price is at $0.67, just below the support level of $0.70 that was maintained at the beginning of the week. This altcoin has slightly decreased after failing to surpass the resistance level of $0.74, remaining stuck in a narrow trading range. Nevertheless, a breakout could still occur if the market continues to improve.
The resistance level of $0.74 has been a major barrier for ADA for over five weeks. However, with whales continuing to accumulate and macro indicators showing positive signals, Cardano may soon surpass the $0.74 mark and move towards the $0.80 price range. Successfully breaking the $0.74 threshold would initiate a more sustainable bullish trend.
ADA price chart | Source: TradingView
If ADA fails to hold above the support level of $0.66, confidence from the whales may begin to wane. A deeper drop to the $0.60 area would damage the bullish outlook and could lead to a further correction.
Such a scenario would negate the current positive sentiment and slow down any potential for ADA to reach higher price targets.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.