Cardano (ADA) is struggling to break through a significant barrier, despite receiving support from major investors and improving market conditions.
ADA price remains below key resistance levels, but with whales accumulating large amounts, the breakout potential for this altcoin looks promising. If market conditions continue to be favorable, Cardano may witness a positive shift in price momentum.
ADA whales show optimism
Whale activity was strong in April, with wallets holding between 10 million to 100 million ADA purchasing over 420 million ADA, equivalent to about $289 million. The total amount held by this group increased from 12.47 billion to 12.89 billion ADA. The continuous accumulation by Cardano's largest investor group is an important indicator of strong confidence in the project.
Whales play a key role in the potential price fluctuations of ADA, and their continued accumulation indicates trust in the long-term value of the asset. Large-scale buying activity from this group could help shift market sentiment positively. As the most influential ADA holders increase their positions, the chances of a price surge will also be higher.
Cardano whale holdings | 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 level in nearly two months and is in the positive zone, surpassing the neutral threshold of 50. This indicates that the bullish trend is strengthening, driven by the accumulation of ADA by whales and overall market conditions.
Improving market conditions along with a strong RSI signal that ADA price may soon increase significantly. This technical strength (supported by whale activity) is setting the stage for Cardano's native altcoin to surpass key resistance levels, which could lead to wider acceptance and increased value in the future.
Cardano's RSI | Source: TradingView
ADA price is heading for a breakout
Currently, ADA price is at $0.67, just below the support level of $0.7 that was maintained earlier in the week. This altcoin has seen a slight decline after failing to breach the $0.74 resistance level, thus 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 $0.8 price range. If the $0.74 level is successfully broken, it will initiate a more sustainable upward trend.
ADA price chart | Source: TradingView
If ADA fails to maintain its position above the support level of $0.66, confidence from whales may begin to wane. A deeper drop to the $0.6 range would harm the bullish outlook and could lead to a deeper correction.
Such a scenario would negate the current positive sentiment and slow down any potential for ADA to reach higher price targets.
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