Cardano Whales Accumulate Despite $0.75 Resistance, Price Drops 2.93%

Cardano (ADA) has recently seen significant accumulation by whales, which could potentially drive the price higher. However, the cryptocurrency faces several challenges that could hinder its upward momentum. The $0.75 resistance level has proven to be a formidable barrier, contributing to a cautious market sentiment despite the whale activity. An analyst from COINOTAG noted that while the accumulation could lead to increased volatility, liquidation points might quickly reverse any gains.

Cardano recently rebounded from a key support zone at $0.65, indicating stability at this level. The price has since risen toward the $0.72 region, suggesting potential for recovery. At the time of reporting, ADA was trading at $0.7217, marking a 2.93% decline over the past 24 hours. The Relative Strength Index (RSI) stood at 47.34, reflecting neutral market conditions with no clear signs of being overbought or oversold.

While the rebound from support is encouraging, Cardano remains within a defined range. Without stronger buying pressure, it is uncertain whether the price can break through resistance or if it will face another pullback. The liquidation heatmap highlights key price zones that could lead to increased volatility. The $0.72 to $0.75 range has experienced significant liquidation activity, indicating that ADA’s price is still susceptible to sharp movements. While whales are steadily accumulating ADA, this resistance zone might stall upward momentum or trigger a wave of liquidations, driving prices lower. However, a break above this range could initiate a rally, driven by the consolidation of large positions.

Cardano’s daily active addresses showed a steady but moderate level of user engagement, with 31,005 active addresses recorded. This reflects consistent participation but does not indicate the sharp increase often associated with a bullish trend. The moderate activity suggests cautious optimism among users, although confidence remains measured. If engagement remains stable and whales continue accumulating, ADA could experience a gradual upward movement over time. Additionally, Cardano’s Open Interest (OI) decreased by 11.52% to $738.11 million, signaling caution among traders. The decline suggests that many market participants are stepping back, likely due to uncertainty surrounding ADA’s price action. As fewer traders take leveraged positions, this caution may prevent ADA from making strong moves in either direction. Unless confidence in the market improves, ADA is likely to continue consolidating rather than experiencing significant price swings.

While whale activity has certainly increased buying pressure, ADA’s short-term outlook remains uncertain. The bounce from support is encouraging, but a neutral RSI coupled with declining oi suggests limited momentum. Moreover, key liquidation levels continue to pose obstacles to any strong price surges. Therefore, while whales hold a significant influence on the price action, ADA’s trajectory may remain range-bound unless market sentiment improves or additional buying pressure builds.