Cardano Holds Above $0.67 Amid Whale Exodus and Strong Bearish Signals, But Bullish Inflows Offer Hope

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Cardano (ADA) is currently trading above $0.67, registering a gain of over 2.2% in the past 24 hours. This slight recovery comes after a challenging period where the price corrected by 10% over the past week, continuing a broader downtrend.

While ADA/USD technical indicators point towards strong bearish momentum and large holders appear to be reducing their positions, recent inflows into Cardano investment products and optimistic analyst predictions offer a glimmer of hope for a potential rebound.

Cardano Whales Reduce Holdings to Lowest Level Since February 2023

For Cardano, the dip in whale wallets—which range in value from 1 million to 10 million ADA—which has dropped to its lowest level since February 2023 is a major shift. This decline points to lower confidence among big holders and can cause ADA’s price to be pressured even more down.

Cardano Sees Significant Inflows Amid Broader Altcoin Optimism

A new CoinShares analysis shows that Cardano has seen a notable 500% week-over-week rise in inflows into digital asset investment products despite current pricing challenges. With a total influx of $0.6 million, this represents a larger trend of funds returning into altcoins, implying a possible market recovery and fresh investor interest in ADA.

ADA/USD Technical Analysis: ADA Navigates Key Support and Resistance Levels

Cardano is positioned between immediate resistance at $0.69 and the important support at $0.64, trading currently at $0.67. The downsloping 20-day EMA (around $0.71) and the RSI still in negative territory point to a minor benefit to the bears over the near future.

A closure below the uptrend line—which is under testing—could start a downslip towards $0.50. On the other hand, a bounce off the uptrend line might force ADA towards the moving averages. If buyers can drive and keep the price above the 50-day SMA—about $0.75—they will take control.

Strong Bearish Trend Confirmed by Surging Average Directional Index (ADX)

From 15.83 just four days ago, Cardano’s average directional index (ADX) has jumped to 40.19. This notable increase in the ADX validates a powerful bearish trend under development and acquiring strength.

A reading above 25 denotes a strong trend; the ADX gauges the strength of a trend. An ADX above 40 indicates that the bearish momentum is strengthening, maybe resulting in more falls unless bulls can cause a notable momentum change. ADA is currently in a downturn.

ADA Retests Critical $0.64 Support Level

Cardano has lately retested the critical support level at $0.64 and managed to hold, suggesting that buyers are still protecting this zone. For ADA’s short-term perspective, this level has evolved into a major line of reference. The next upside target would be the resistance at $0.69 should the present decline turn around and optimistic momentum gather.

A breakout over this point might open the path for a $0.77 push. Even aiming for $1.02, a sustained surge would be a return above the $1 level for the first time since early March. If the $0.64 support fails on another test, however, it would indicate declining buyer conviction and probably drive ADA towards the next support level at $0.58, therefore indicating a continuation of the downturn.

Cardano Price Prediction: Potential 900% Surge on Ripple Stablecoin Integration

Some analysts remain rather positive about Cardano’s future despite the present adverse warnings. One unidentified crypto expert projects a significant 900% increase for ADA, maybe reaching $3.80 or even $5.60 by 2025. The prospect of listing Ripple’s $RLUSD stablecoin on the Cardano network is a main factor fueling this optimistic forecast.

This connection might provide the Cardano ecosystem with much-needed liquidity, which would appeal more to investors ADA. Excitement in the community is sparked by cardano founder Charles Hoskinson’s verified continuous conversations with Ripple on this possible cooperation. Hoskinson has also alluded to possible interfaces with other significant blockchain ecosystems including Bitcoin, Dogecoin, and Chainlink, hence extending Cardano’s use and acceptance.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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