The price of Cardano is testing an important resistance level as whales bought 410 million ADA tokens in April. Cardano (Cardano-ADA) has once again come into focus after recent blockchain data revealed that whales (large investors) rushed to accumulate a significant amount during April. According to crypto analyst Ali, investors with addresses holding a large amount of ADA added over 410 million tokens to their holdings last month, taking advantage of its recent price fluctuations.
Whales accumulated over 410 million #Cardano $ADA in April! pic.twitter.com/8Qa6xCaWtb
Despite the volatility resulting from macroeconomic conditions and early enthusiasm regarding the U.S. intention to hold crypto reserves, the price of Cardano ended April up by 4.6% compared to the previous month due to its strong buying momentum, indicating renewed confidence in the potential rise of ADA's price in the medium term, especially from long-term investors; such buying activity usually suggests the possibility of strong price movements and reflects some entities returning to the market to take advantage of price fluctuations without the need for additional liquidity.
Key points:
Whales added 410 million ADA tokens to their wallets during April.
The price of ADA fluctuated last month within a range of $0.6247 to $1.19
The price of ADA ended its movements for the month of April up by 4.6% compared to the previous month.
The price of Cardano is holding above a major support level
The price of Cardano is stable at $0.6876 after recently retreating below its upward trend line, while the 50-day exponential moving average (EMA-50) is just above at $0.6966, representing a key resistance level that could impede further upward attempts. Given that the price is approaching the $0.70 barrier, it currently faces a major resistance area that could determine its direction in the near term.
Conversely, momentum indicators continue to send warning signals, as the MACD bars have turned red after the trend line crossed below the signal line; however, the price still maintains the support level of $0.6704. If the bulls manage to push the price to break the $0.70 barrier, it may continue to rise targeting a retest of subsequent resistance levels at $0.7268 and possibly $0.7470, but it could continue to retreat towards the $0.6430 level if it fails to break this barrier.
Key levels worth monitoring:
Closest resistance barrier: $0.7014.
Targets: $0.7268 and $0.7470 respectively.
Support levels: $0.6704 followed by $0.6430.
Awaiting confirmation to explore the price prospects of Cardano
Traders looking to benefit from the current situation might consider waiting until the price succeeds in breaking the barrier of $0.7014, accompanied by increased trading volumes, which would then provide an attractive entry point, especially if the MACD indicator's trend line successfully crosses above the signal line; otherwise, it would be a false breakout.
Price movement chart for the ADA/USD pair: Tradingview Trading position:
Entry: with a close above the barrier of $0.7014.
Target levels: $0.7268 and $0.7470 respectively.
Stop loss: closing below the level of $0.6700.
However, it is worth monitoring trading volumes and momentum indicators before opening the position.
As the whales continue to provide support behind the scenes and await the anticipated breakout of the price trend in recent times, the price may be gearing up for strong movements if the bulls intervene at the right time.