Cardano (ADA) has recently struggled to breach a key barrier despite the support of large investors and improving market conditions.
The price of ADA remains below critical resistance levels, but with whales accumulating significant amounts of ADA, the altcoin’s breakout potential seems promising. If market conditions continue to improve, Cardano could see a positive shift in price momentum.
Cardano Whales Are Optimistic
Whale activity was strong in April, with addresses holding between 10 million and 100 million ADA and purchasing over 420 million ADA, worth approximately $289 million, bringing their holdings to 12.89 billion ADA from 12.47 billion ADA. This consistent accumulation by the largest holders of Cardano is a significant indicator of confidence.
Whales play a key role in ADA’s potential price movements, and their continued accumulation suggests that they believe in the asset’s long-term value. The large-scale accumulation could help shift market sentiment in a positive direction. As the most influential ADA holders increase their positions, the likelihood of a price surge rises.
Cardano’s overall momentum is showing signs of improvement, especially with technical indicators such as the Relative Strength Index (RSI). Currently, the RSI is at a near two-month high and sits in the positive zone above the neutral mark of 50.0. This indicates growing bullish momentum, driven by both the accumulation of ADA by whales and broader market conditions.
Improving market conditions and the strong RSI reading suggest that Cardano’s price may soon experience a significant rise. This technical strength, supported by whale activity, sets the stage for ADA to break through its key resistance levels, potentially leading to more widespread adoption and price appreciation.
ADA Price Aims At Breakout
Cardano’s price is currently at $0.69, just below the support of $0.70, which it had been holding earlier this week. The altcoin fell slightly after failing to breach the $0.74 resistance level. The inability to break past this level has kept ADA trapped in a tight range, though a breakthrough remains possible if the market continues to improve.
The $0.74 resistance has been a key barrier for ADA for over five weeks. However, with whales continuing to accumulate and macro indicators showing strength, Cardano could soon push past $0.74 and potentially rise toward $0.80. A successful breach of $0.74 would signal the beginning of a more sustained bullish trend.
If ADA fails to maintain its position above the $0.66 support, confidence among whales could start to wane. A further decline toward $0.60 would hurt the bullish outlook, potentially leading to a deeper correction. Such a move would invalidate the positive sentiment and delay any potential for ADA to reach higher price targets.
Disclaimer
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