Whale ADA hit a two-year low as the main support level was retested

Cardano (ADA) is facing increasing pressure as the price of ADA has dropped nearly 10% in the past 7 days, continuing a broader downtrend and trading below $1 for almost a month. With technical indicators flashing warning signs and large holders exiting their positions, concerns about the short-term stability of ADA are escalating.

The recent rejection at higher resistance levels and strong directional signals indicate that the bearish momentum is not yet over. As the support level of $0.64 is tested once again, ADA’s next move will determine whether it can recover or continue to decline further.

Cardano ADX shows a very strong downtrend

The average directional index (ADX) of Cardano is currently at 40.19, significantly up from 15.83 just 4 days ago. This move indicates a rapidly strengthening trend momentum.

Currently, ADA is in a downtrend, and the increasing ADX indicates that the downward momentum is strengthening, attracting attention to the current decline.

ADA ADX | Source: TradingView ADX is a trend strength indicator used to measure the strength of a trend, regardless of its direction. This indicator oscillates from 0 to 100, with values below 20 typically indicating a weak or nonexistent trend, while values above 25 suggest a strong trend is currently taking place.

The ADX of Cardano is above 40, confirming the current downtrend that is taking place and becoming stronger. If this trend continues, it may indicate further downward pressure unless a change in momentum begins to form from the bulls.

ADA whales drop to the lowest level since February 2023

The number of Cardano whales holding from 1 million to 10 million ADA has decreased to 2,406, compared to 2,421 just 4 days ago.

This decline brings the number of whales down to its lowest level since February 2023, marking a potentially significant change in the behavior of large holders. These moves are noteworthy, as changes in whale holdings often occur ahead of broader market trends.

Whale tracking is very important because these large holders can significantly influence price action through their buying or selling decisions. A decrease in the number of whales will signal a decline in confidence or a rotation of capital into other assets.

The number of addresses holding between 1 million and 10 million ADA | Source: SantimentIn the case of Cardano, the decline indicates that some key players are exiting or reducing their exposure, adding further downward pressure on ADA.

If this trend continues, it could weaken investor sentiment and make it harder for ADA to recover in the short term.

Can ADA maintain support at $0.64 once again?

The price of ADA has recently tested the support level of $0.64 and is trying to hold, indicating that buyers are still defending that area. This support level is an important boundary in ADA’s short-term outlook.

If the current downtrend is reversed and bullish momentum strengthens, the next target for an increase will be the resistance level at $0.69. A breakout above that level will open the door for a price increase towards $0.77.

ADA Price Analysis | Source: TradingViewIf the price rally continues strong, ADA may target $1.02, marking a return above $1 for the first time since early March.

However, the support at $0.64 is still an important level to watch. If Cardano tests this level again and cannot hold it, it may indicate that buyers’ confidence is weakening.

Breaking below $0.64 will send ADA towards the next support level at $0.58. This will confirm the continuation of the downtrend and could trigger additional selling pressure.

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

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Dinh Dinh

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