Cardano (ADA) has shown signs of a potential reversal in recent days, with its price surging 35% between July 8th and 13th. This uptick coincides with a rise in buying activity from large holders, often referred to as “whales.” Let’s delve into the technical indicators and understand how these developments might influence ADA’s price in July.
Whales Accumulate, Price Hints at Bullish Shift
While the long-term trend for ADA remains bearish, on-chain data from IntoTheBlock reveals a crucial detail: addresses holding more than $10 million worth of ADA tokens have increased their holdings by 6.93% over the past month. This suggests that whales might be accumulating ADA during the recent price dip, potentially anticipating a future rise.
Technical Indicators Offer Mixed Signals
The 1-day price chart for ADA displays a positive development. The price climbed above a recent low of $0.4235, signifying a potential shift in market structure. However, this doesn’t guarantee a sustained uptrend. The upcoming days will be crucial as the price confronts resistance around the $0.44-$0.475 zone. A daily close above $0.5 would be a strong indicator of a bullish reversal.
Short-term Opportunities and Resistance Levels
The bullish momentum is further reinforced by the daily Relative Strength Index (RSI) surpassing the neutral 50 level. Additionally, the OBV (On-Balance Volume) has also climbed, suggesting that buying pressure is fueling the recent gains. In the near future, a retest of the $0.42-$0.43 zone could present a buying opportunity for investors targeting a price range of $0.46-$0.5.
Also Read: Cardano on the Brink of Decentralization As Chang Hard Fork Nears with Key Hurdles
Cardano’s Future Trajectory Hinges on Breakout
While the current signs are encouraging, a breakout above the psychological resistance level of $0.5 is essential for confirming a long-term uptrend. Such a move could potentially lead ADA towards $0.57 and even $0.68, levels significant earlier this year.
Conclusion
The increased buying activity by whales and positive technical indicators paint a cautiously optimistic picture for Cardano in July. A confirmed breakout above $0.5 would be a significant step towards a bullish reversal. However, investors should exercise caution and closely monitor price movements before making any investment decisions.
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.
About The Author
