Cardano (ADA) has been navigating through a period of price pressure, with the coin recently stabilizing around the $0.60 mark. During this time large investors, known as whales have been actively accumulating ADA.
Over the past 48 hours, whales holding between 1 million and 10 million ADA have added roughly 70 million tokens, valued at $42 million. This influx of buying activity marks a notable increase in whale holdings, which have now reached their highest level in five months.
Technical Indicators Show Potential for Reversal
Looking at the technical side, ADA’s price has been confined within a range between $0.60 and $0.62, holding above a crucial support level. The Moving Average Convergence Divergence (MACD) indicator indicates a decline in bearish momentum, as evidenced by the diminishing red bars on the histogram.
This could indicate that downward pressure is weakening, paving the way for a potential reversal in ADA’s price.
However, ADA has encountered difficulties in maintaining bullish momentum in recent months. Each time the price nears a bullish MACD crossover, it has failed to sustain that momentum.
With recent whale activity and improving technical indicators, ADA may finally be positioned to break above resistance levels. A move above $0.62 could set the stage for further upward movement, with the next target sitting at $0.66.
If ADA fails to hold its support at $0.60, it could experience a price drop toward $0.57 or lower.
Key Price Levels to Watch
Cardano’s price chart reveals a symmetrical triangle pattern between $0.62 and $0.68. The 20-EMA sits near $0.65, the 50-EMA at $0.67, and the 100-EMA near $0.71, indicating short-term downward pressure.
A break above $0.67 could push ADA towards $0.71, while a drop below $0.62 would suggest a continuation of the current correction phase.
Despite some positive signs, the Relative Strength Index (RSI) remains near 36, showing weak demand and limited buying strength. Until ADA demonstrates stronger volume and breaks through key resistance levels, the market remains cautious.