Cardano(ADA) Loses 10% Amid Declining Whale Presence
Cardano (ADA) has dropped nearly 34% over the past 15% over the past week. Its market capitalization is now $22 billion. Trading prices for more than one month are below $1, reflecting persistent bearish feelings.
Technical indicators showed a strong downward trend, with ADX rising to 46.8, and the signal exacerbating sales pressure. However, if key support levels remain, the ADA could reverse its trend and potentially lose more than $1 in March.
Cardano ADX shows the current downward trend is strong
ADA’s ADX is currently 46.8, up sharply from 10.3 on February 23. The average direction index (ADX) measures the intensity of the trend without indicating its direction.
Its ranges from 0 to 100, with values above 25, marking a strong trend with values below 20 Impressing a weak or non-trend market. ADX above 40 indicates a very strong trend, indicating that market participants are very confident about current price movements.
With the ADX of ADA at 46.8, the price trend is down, which indicates that bearish momentum is increasing strength. This shows that sales pressure is intensifying, making the downward trend continue even more.
Unless the purchase interest increases significantly, Ada may face further disadvantages. High ADX values confirm that the current bearish trend is strong and durable, reducing the likelihood of a rapid reversal.
ADA whales just reached their lowest level since early January
The number of Cardano whales (addresses 1 million to 10 million ADA) has been steadily declining over the past week, from 2,477 people on February 21 to 2,454 now. This is the lowest level since January 9.
Tracking these whales is crucial because they represent that buying and selling behaviors of large investors can have a significant impact on market liquidity and price movements.
When the whale address decreases, this indicates that the main holder is Reduce its position or allocate its shareswhich may indicate bearish sentiment.
This sharp decline in wild horse whales could indicate increased sales pressure, which could lead to Further disadvantages of ADA prices.
As large holders reduce exposure, it can create more supply in the market, driving prices down. Furthermore, the decline in whales’ populations suggests a weaker confidence among large investors, which could trigger further sales by smaller holders.
If this trend continues, ADA may face an enhanced downward momentum in the coming days.
Will Cardano return $1 in March?
The ADA’s EMA line currently shows a bearish setting, with the short-term line below the long-term, indicating a continued downward momentum.
ADA can test key support If this downtrend continues to be strong, the level is $0.5. If this support is lost, the price may drop further to $0.32, marking its lowest level in early November 2024.
This bearish configuration indicates continued sales pressure, increasing Further disadvantages unless purchase interest pickup.
However, if support for $0.5 is tested and held, Cardano Prices Can Find Power to Reverse Its Trend.
In this bullish situation, the ADA could rise, testing resistance at $0.65.
If that level is broken, the price may continue to climb to $0.83 or even $0.90, paving the way for the first time since late January with a grand grander above $1.
Disclaimer
and Trust Project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Beincrypto is committed to accurate and impartial reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions,,,,, Privacy Policyand Disclaimer Updated.
