Cardano’s price is poised for a surge as whales continue to accumulate the cryptocurrency, but there is also a risk of decline if profit-taking becomes more prevalent.
Recent data suggests that despite a recent downturn, there are bullish signals for Cardano. Whales, or address holders with significant ADA holdings, have been accumulating nearly 50 million ADA worth $30.3 million over the past ten days. This accumulation indicates positive sentiment among large holders, which could potentially drive up Cardano’s price.
Although Cardano has faced challenges in recent weeks, such as a double-digit price decrease, the price-DAA divergence is signaling a potential short-term rise in price. This divergence compares the asset’s price movement with the number of active addresses daily. While a dropping DAA typically indicates bearish sentiment, in Cardano’s case, it suggests a likely price increase in the near term. This highlights the complex relationship between price momentum, investor sentiment, and network adoption.
However, there are also bearish outlooks for Cardano. Whale transaction data indicates reduced interest from large holders, potentially indicating a sell-off. Analysts view these trends as bearish and warn of potential price stagnation or further declines. Additionally, Grayscale has removed ADA from its flagship fund, which could impact investor sentiment.
Despite these challenges, Cardano maintains a strong market cap of over $21 billion. The trading volume for ADA in the past 24 hours is $254 million, and the circulating supply represents over 79% of the total supply. The current trading price of Cardano is $0.5906, showing a slight increase in the past 24 hours. However, there have been declines of over 20% in the past month and 9.29% in the past week.
On a positive note, Cardano is exhibiting a falling wedge candlestick pattern, which is typically seen as a bullish reversal signal in technical analysis. This pattern suggests a potential breakout and a significant rise in ADA’s price. Analysts anticipate a possible increase of approximately 32.91%, with ADA reaching a price of $0.813 if Cardano breaks out of this pattern.
Despite this bullish outlook, there are concerns about the divergence between Cardano’s price and daily average addresses (DAA). This divergence suggests a sell signal and a potential shift in market sentiment towards selling pressure. If this sentiment intensifies, it could lead to a decline in Cardano’s price, invalidating the falling wedge pattern and potentially sending ADA to $0.500.
The conflicting signals in Cardano’s market dynamics present challenges for traders and investors.