Following the completion of the Bitcoin halving, Cardano (ADA), ranked as the 10th largest cryptocurrency, faced a significant price drop of over 17%. However, recent analysis of ADA’s daily chart suggests a bullish reversal may be underway, with a bullish divergence forming at the demand zone.
Whales Drive Record Transaction Volume
According to IntoTheBlock (@intotheblock), an on-chain analytics firm, Cardano whales have been active, with an average daily transaction volume of $13.84 billion over the past week. This volume is impressive, standing at one-third of Bitcoin’s, five times that of Litecoin’s, and over sixteen times higher than Dogecoin’s. The surge in whale activity highlights growing interest from investors and retailers in ADA, possibly capitalizing on the recent price drop.
As of the latest update, Cardano (ADA) is trading around $0.45, experiencing a 1% increase in the last 24 hours and reaching an intraday high of $0.46. Over the past week, ADA saw a price decline of over 4%, hitting a low of $0.42. In the last 30 days, ADA’s price dropped by 24% due to market uncertainties.
Technical Analysis Points to Bullish Outlook
While ADA is currently trading below the 200 EMA (Exponential Moving Average), the daily chart indicates a potential bullish reversal. A bullish divergence at the demand zone near $0.45 suggests a positive shift, supported by the Relative Strength Index (RSI) below 40, signaling oversold conditions.
If market sentiment shifts slightly, ADA may hit the $0.52 level, with further potential to reach $0.62 and beyond if it sustains above $0.52. Conversely, a close below $0.42 on the daily timeframe could trigger a significant decline in ADA’s price. Traders are advised to monitor these key levels closely for potential trading opportunities.
Not a financial advice.