Cardano (ADA): recent action and potential movements
Resistance persists at $0.70 for Cardano (ADA) in technical analysis as the downward trend persists.
Cardano, the popular cryptocurrency, has been going through some ups and downs. After a recovery attempt that took its price close to $0.70, it's currently consolidating between $0.63 and $0.75. But what's going on? And what's next for ADA? Let's dive in!
Large holders cashing out
One of the factors contributing to ADA's recent downturn seems to be the significant selling by large holders. Whale addresses moved approximately 200 million ADA, worth around $136.7 million, in March alone [1]. This massive selloff coincides with ADA's more than 20% decline in the first quarter of 2025.
Technical analysis
Technical indicators show a bit of a mixed picture. A moving average cross may soon signal a potential dead cross, which could indicate further bearish movement ahead. Traders and investors are closely watching key support and resistance levels:
- If ADA falls below the $0.63 support level, it might lead to further losses or a potential reversal if the price retests this level.
- On the upside, if Cardano clears the $0.75 resistance, it could pave the way for a stronger upward move, with some analysts predicting a target of $1 for the next few weeks.
Long-term growth prospects
Despite the current downtrend, some analysts remain optimistic about Cardano's long-term potential. ADA has shown an established ascending channel pattern over the years that has historically led to significant price surges. If this pattern persists, ADA could potentially reach $50.48 by the end of 2025 [2].
Where's ADA right now?
Currently, ADA is trading around the $0.68 mark, up by 0.90% in the last 24 hours [3]. However, it's down by about 7.87% over the past week, indicating a persistent challenge in reversing the downtrend.
Keep an eye on ADA
Cardano has been showing signs of potential long-term growth, but recent whale activity and technical indicators suggest that short-term volatility should be expected. Make sure to stay informed and keep an eye on ADA's movements, as they might provide insight into its future potential.
References:
[1] Martinez, A. (2022, April 1). Whales Aredumping Millions of Cardano (ADA) as price plummets 34%. Finbold. Retrieved May 10, 2022, from https://finbold.com/whales-are-dumping-millions-of-cardano-ada-as-price-plummets-34/
[2] TradingView (n.d.). Cardano (ADA) Price Forecast 2025. TradingView. Retrieved May 10, 2022, from https://www.tradingview.com/bitcoin/forecast/Cardano-ADA-price-prediction/
[3] Coin market cap (n.d.). Cardano (ADA). Coin market cap. Retrieved May 10, 2022, from https://coinmarketcap.com/currencies/cardano/
[4] Finance Magnates (2021, March 23). Cardano Soars 20% After Terraform Labs Snags a Key Developer for the Tzi Vietnam Research Group. Finance Magnates. Retrieved May 10, 2022, from https://financemagnates.com/cryptocurrency/news/cardano-soars-20-after-terraform-labs-snags-a-key-developer-for-the-tzi-vietnam-research-group-nft-gaming/
[5] Alternative.me (n.d.). Crypto Fear & Greed Index. Alternative.me. Retrieved May 10, 2022, from https://alternative.me/crypto/fear-and-greed
- Despite the recent whale selling in Ethereum (ETH) and the bearish movements shown by the moving average cross, some analysts remain optimistic about its long-term potential, as it has displayed an established ascending channel pattern in the past that led to significant price surges.
- The declines in ADA and Bitcoin (BTC) in the first quarter of 2025 were not only caused by whale activity but also by the Crypto Fear & Greed Index, which indicated increased fear in the crypto market.
- Investing in cryptocurrencies such as Cardano (ADA) and Bitcoin (BTC) can be benefited by keeping close track of their technical analysis and the various factors influencing their movements, like large holder activities and the overall sentiment in the finance and technology sectors.
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