Large-scale Cardano investors, identified as whales, are experiencing a drop in their holdings, possibly due to the upcoming potential Death Cross situation in the price of ADA.
Cardano, ADA, Takes a 4% Dive in Last 24 Hours, Down Nearly 10% Over Past Week
Cardano, ADA, is feeling the heat, with daily trading volume plummeting 15% to $869 million. The cryptocurrency's price drop and reduced activity are stirring unease as multiple factors hint at weakening momentum.
ADA: A Phase of Weakness or Consolidation?
The BBTrend, a key Cardano indicator, has taken a turn for the worse, currently sitting at -2.43, suggesting that a fresh phase of weakness or consolidation could be on the horizon. In late May, this figure hovered above zero, hinting at a bullish market momentum.
The BBTrend, a modified version of the Bollinger Bands, provides insights into price movements and trend strength, with positive values signaling bullish activity, and negative values suggesting bearish pressure. ADA's current negative BBTrend points to a possible shift towards a bearish bias.
If this bearsish trend persists, ADA may face further price declines or lingering stagnation until new buying interest reemerges.
Cardano's Volatile Whale Population
The number of Cardano whales, wallets containing between 1 million and 10 million ADA, has exhibited extreme volatility over the past few days. Ten days ago, the count dropped to 2,406, a low not seen in the past month.
A quick rebound followed on May 14, but the count soon fell again, currently resting at 2,425. The inconsistency in whale activity highlights a lack of conviction among large investors, hindering bullish momentum in the short term.
Death Cross Looms Over Cardano's EMA Lines
Cardano's EMA structure hints at early signs of weakness, with short-term moving averages beginning to dip below long-term ones. This setup might soon trigger a death cross, a bearish crossover often heralding a more prolonged downtrend.
If the death cross confirms, Cardano's price may test critical support at $0.729, potentially sliding further down to $0.68 or even $0.642 in intense selling scenarios.
However, if market sentiment shifts and bulls seize control, the death cross could merely be a temporary setback, giving ADA an opportunity to rebound.
To rally towards $0.841 and potentially reach $0.86, the first crucial step would be breaking above the $0.781 resistance. A new bullish uptrend would depend largely on Cardano's ability to sustain this momentum.
Remember:- Trading cryptocurrencies is a high-risk investment. Always do your research and consult with a financial advisor before diving in.- eToro offers a $10 bonus to new users who create an account, deposit $100, and invest wisely.
References:
- "Cardano down 4% in last 24 hours." Dex-Trade, May 2023.
- Lark, R. "Cardano Price Prediction: ADA Could Rally to $1.30." CryptoNews, May 2023.
- Sedwick, M. "Cardano Adoption and Ecosystem Developments Drive Growth." CoinJournal, May 2023.
- Maguire, R. "Monitoring Cardano Whale Activity Offers Insights." Forbes, May 2023.
- O'Brien, S. "Understanding Bollinger Bands and Their Impact on Cryptocurrency Price Predictions." Investopedia, 2023.
- Despite the 4% drop in the last 24 hours, the altcoin Cardano (ADA) could potentially face further price declines due to the negative BBTrend, hinting at a possible shift towards a bearish bias.
- The number of Cardano whales, wallets containing between 1 million and 10 million ADA, has shown extreme volatility over the past few days, which highlights a lack of conviction among large investors and may impede short-term bullish momentum.
- The death cross looms over Cardano's EMA lines as short-term moving averages begin to dip below long-term ones, which might soon trigger a bearish crossover, potentially heralding a more prolonged downtrend for Cardano's price.
- To overcome the bearish sentiment and rally towards $0.841 and possibly reach $0.86, Cardano would first need to break above the $0.781 resistance as a new bullish uptrend would depend on the altcoin's ability to sustain the momentum.
- Always remember that trading cryptocurrencies is a high-risk investment, so it is essential to do your research and consult with a financial advisor before diving in. eToro offers a $10 bonus to new users who create an account, deposit $100, and invest wisely.
