Cardano’s ADA has witnessed a downward trajectory for the past week, with buyers unable to turn the trend. As Bitcoin struggles to maintain its momentum above $26K, leading altcoins, including Cardano, are feeling the pressure, leading to a bearish outlook among traders. Yet, hope emerges as there’s a surge in large transactions near ADA’s price drop, hinting at potential accumulation and an upcoming big move.
Whales Are Bullish Amid ADA’s Price Dip
Whales often see a dip in trending altcoins as a profitable chance to hop in. Consequently, they amass massive quantities of the altcoin, generating buying momentum on the chart, which can lead to a price surge. Cardano is currently in such a scenario.
Data from IntoTheBlock indicates a significant increase in large transactions on September 25th. The figures show that whales shifted close to $3 billion, with the metric rising from $4.7 billion to $7.4 billion. Interestingly, this activity emerged following ADA’s price drop to a low of $0.24. This seemed to be an accumulation as it created a strong support level for ADA price, preventing it from dropping further.
However, there remains a bearish undertone as the Open Interest (OI) metric has seen a significant decline over the past week, plummeting by more than $8 million. This indicates a declining interest in ADA’s trading, given its inability to induce notable price volatility.
With Cardano’s volatility dropping to 24.3%, potential buyers might be deterred. Additionally, the long/short ratio for Cardano has been trending negatively. The current ratio stands at 0.76, with 56.5% of positions leaning towards short-traders. Conversely, bullish traders hold 43.5% in long positions, eliminating the upward momentum for ADA’s price. This could lead to increased selling pressure at resistance points.
What’s Next For ADA Price?
Cardano’s ADA recently touched a crucial support level at $0.24, suggesting that bearish momentum continues to dominate the altcoin. However, buyers are aggressively defending an immediate decline as the ADA price reversed its trend from the dip, suggesting buying demand near lower levels. As of writing, Cardano price trades at $0.2454, surging over 0.5% in the last 24 hours.
Currently, there’s a glimmer of hope for the bulls as the RSI displays a bullish divergence below the midline. For a positive shift, the bulls need to push the ADA price past the descending trendline quickly. Achieving this could invalidate a bearish possibility, potentially sending the price to $0.28.
Conversely, if the bears pull ADA’s price below $0.23, it will solidify the short positions. This could lead to a decline towards $0.22 and possibly even to a target of $0.189.