Cardano’s Bulls’ Hopes Continue to Wane as ADA Technicals Remain Bearish and Whale Activity Dips: Watch These Key Levels Closely
According to charts shared by @ali_charts on Twitter, the Cardano (ADA) cryptocurrency appears to be facing bearish technicals and a lack of large investor activity, potentially signaling further price consolidation or an impending drop.
Data from the blockchain analytics firm altFINS shows Cardano is experiencing a lull in whale transactions, with large ADA holders exhibiting reduced activity on the network. A diminished presence of high-value transactions could reflect lower interest from major investors, at least in the short-term.
From a technical analysis made by altFINS, the ADA/USD trading pair is painting a mixed picture across different time frames. The long-term trend still appears upward, forming a series of higher highs and higher lows – a bullish pattern. However, Cardano faced rejection twice at the $0.80 resistance level, forming a double top reversal pattern which is typically bearish.
Watch These Key Levels Closely
Currently, ADA is consolidating in a descending triangle pattern, which often results in a breakout continuation in the direction of the prevailing trend. If the downtrend persists in the short-term, traders should watch for a potential bearish break below the $0.57 support which could see prices revisit the $0.46 level next.
Source: altFINS – Start using it today
On the other hand, a bullish upside breakout from the triangle could have ADA retest the $0.80 resistance zone. Key resistance levels to monitor are $0.65-$0.68 followed by $0.80.
Overall momentum indicators like the MACD and RSI suggest bearish momentum is in control for now. The MACD line has crossed below its signal line, while the RSI has dipped under 45 – readings typically associated with a downtrend.
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Show more +Market participants will be closely watching whether large Cardano holders re-accumulate positions which could reinvigorate bullish momentum. For now, the technical charts suggest the path of least resistance is to the downside unless ADA can muster a strong breakout from its current consolidation pattern.
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