Cardano [ADA] has recently experienced a notable breakout from a descending channel, marking a pivotal shift in its price action. The breakout, which occurred a week ago, was accompanied by approximately $880,000 in short liquidations within 24 hours, intensifying the upward momentum. This aggressive surge has brought Cardano back into the spotlight, with analysts closely monitoring key support and resistance levels.
Whale Accumulation: A Mixed Bag
Despite the bullish breakout, on-chain data presents a mixed picture regarding whale activity. While the 10 million to 100 million ADA holder cohort added 1% of the circulating supply, equivalent to $296 million worth of tokens, other major cohorts exhibited inconsistent behavior. Specifically, the 100 million to 1 billion ADA holders increased their holdings over the past three days, suggesting renewed interest among significant players. However, other cohorts appeared to be selling, indicating a fragmented accumulation trend across different holder categories.
Network Activity Slows, But Bulls Hold Key Support
Network activity has shown signs of slowing down, particularly in transaction volume and daily active addresses, both of which saw a sharp drop on May 9. The decline persisted over the weekend, which is typical for daily addresses but unusual for transaction volumes. Despite this lull, Cardano’s price has remained above the critical $0.75 support level, holding firm at $0.8 at press time.
Technical indicators also signal potential for further gains. The 20 and 50-period moving averages are displaying bullish momentum, while the On-Balance Volume (OBV) indicates sustained buying pressure. With the mid-range resistance at $0.91 in sight, ADA bulls may look to capitalize on current market sentiment to drive the token higher.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Input | Output Partners with Brave to Integrate Cardano into Brave Wallet
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
