Whales Cardano start acquisition when the price of ADA holds within a narrow range

Cardano (ADA) has increased by over 16% in the past week and continues to rise despite a 27% drop in trading volume yesterday. While momentum indicators and whale activity still lean towards a bullish trend, many signs of consolidation are appearing as ADA trades near important support and resistance levels.

Whether the price of ADA rises higher or falls back may depend on how it reacts to the important range of $0.668–$0.709 in the coming days.

ADA losing momentum or just regaining form ?

The average directional index (ADX) of Cardano is currently at 30.17, slightly down from 32.76 yesterday after a strong bullish move from 14.9 two days ago.

This rapid increase signals a strong and stable trend recently, with the Cardano community challenging Charles Hoskinson over his promises regarding the roadmap.

Despite a slight decrease in ADX, ADA remains solid in a bullish trend, indicating that the bullish momentum is still present, although it may be cooling off a bit after a strong acceleration.

ADX ADA | Source: TradingViewADX is a trend strength indicator ranging from 0 to 100, indicating the direction and strength of the trend. Values below 20 indicate a weak or non-existent trend, while values above 25 typically confirm a strong trend.

The current ADX of ADA at 30.17 reflects a healthy bullish trend that is still ongoing, although the slight fall may indicate that the momentum of the trend is stabilizing rather than accelerating.

As long as ADA maintains this level, the bullish trend remains intact, but traders should monitor if the ADX continues to fall as it may indicate weakening strength.

Whales ADA return

The number of ADA whale addresses – wallets holding between 1 million and 10 million ADA – has increased slightly from 2,405 on April 22 to 2,408.

This comes after a fall from 2,421 on April 20, indicating a small but notable return of large holders after a brief distribution period.

Although the increase is not significant, it marks a potential shift in the sentiment of high-holding investors, who often play a key role in driving price trends due to the massive volume of assets they control.

Addresses holding between 1 million and 10 million ADA | Source: SantimentMonitoring whale activity is very important as these large holders can significantly influence the market. When whales accumulate, this is often seen as a sign of confidence and can serve as a leading indicator of bullish price volatility.

Conversely, when whales start to sell off some of their holdings, this may signal weakening confidence or expectations of a price decline in the short term.

The recent bullish movement from 2.405 to 2.408 may indicate renewed interest from whales in accumulating ADA, suggesting a potential recovery or that prices continue to rise sharply – especially if this trend persists.

The bullish trend of ADA remains strong, but the main support must hold

According to the EMA lines, the price of Cardano is still in a bullish trend, with the short-term moving averages (MA) still above the long-term MAs – a classic sign of sustainable bullish momentum.

This correlation indicates a general trend favorable to the bulls despite the recent price consolidation.

ADA Price Analysis | Source: TradingViewHowever, ADA is trading in a narrow range, facing resistance at $0.709 and supported at $0.668, setting the stage for a potential breakout or breakdown.

If the price of ADA tests the support level of $0.668 and fails, ADA could fall to the next support level at $0.634 and a deeper slide could push it down to $0.59, marking a more significant correction.

On the contrary, a clear breakthrough above the resistance level of $0.709 could trigger new bullish momentum, with the next bullish target being around $0.77.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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