Over the past 72 hours, there has been a notable increase in whale activity in relation to Cardano, with a substantial acquisition of over 130 million ADA. Currently, the trading value of Cardano [ADA] stands at $0.5912, indicating an 11.65% decrease in the last 24 hours.
This recent surge in whale acquisitions may signal a rejuvenated trust in Cardano, particularly following a consolidation phase.
Yet, it remains ambiguous whether this surge signifies the commencement of a robust upward trend or is merely a transient market fluctuation.
Cardano Price Analysis: Crucial Levels to Monitor
Cardano’s price movement has been bearish in recent weeks, with ADA breaching significant support thresholds. The price has been consolidating within a symmetrical triangle formation, hinting at potential forthcoming volatility.
Presently, ADA is trading slightly above the critical support level of $0.5928. A breach of this level could push the price down towards $0.5793. On the flip side, resistance is identified at $0.6793, with a major hurdle at $0.9907.
Cardano Active Addresses: A Downtrend In Activity
The daily active addresses for Cardano display a notable decline, with only 24,407 active addresses observed. This figure starkly contrasts with the previous peak values witnessed in late 2024.
While whales engage in substantial ADA acquisitions, retail involvement seems to dwindle. This dwindling active address count signifies waning enthusiasm for Cardano among minor investors, foreseeably limiting short-term upward price momentum.
ADA MVRV Ratio: Pessimistic Market Sentiment
ADA’s MVRV ratio has notably plummeted to -6.05%, indicating that Cardano currently trades below its historical valuation. The negative MVRV denotes that investors who bought ADA at higher levels are presently holding positions at a loss.
Consequently, a decline in market participants could instigate further price suppression, with the negative sentiment reinforcing bearish undertones.
ADA Liquidation Heatmap: Growing Pressure from Liquidations
The liquidation heatmap reveals a distinct cluster of liquidations beneath the $0.60 threshold, signifying numerous leveraged positions at risk in case of continued price descent.
A downward trajectory in Cardano’s value might incite a succession of forced liquidations, heightening the downward force on prices. Hence, traders are advised to exercise caution, given the liquidation strain that could exacerbate the decline if critical support levels falter.
Can Whale Activity Propel a Price Rally?
Despite the surge in whale actions, ADA encounters multiple hurdles, including dwindling daily active addresses, an adverse MVRV ratio, and escalating liquidation pressures.
These elements collectively suggest that Cardano is presently navigating a bearish phase, where the influx of whale activities might lack the potency to reverse the prevailing trend.
Conclusively, barring substantial shifts in market sentiment, Cardano is unlikely to witness a robust upsurge in the immediate future.