Cardano Price Forecast: Whales Unlikely to Propel ADA Prices Skyward Just Yet!

Cardano price prediction- Whale accumulation unlikely to send ADA prices soaring just yet

Cardano (ADA) recently showed fluctuations in its price, bouncing back to $0.694 after dipping to a local support of $0.61. However, a subsequent retracement of 4% has raised concerns about the short-term outlook for ADA amidst market resistance from Bitcoin and low speculative interest.

Key Takeaways

Cardano (ADA) recently traded close to a local support level at $0.61. It rebounded by 11.4% to reach $0.694 but has since retraced by 4%.
Bitcoin (BTC) has been indecisive at the $116k mid-range resistance, which has contributed to a price dip across the cryptocurrency market.
The Open Interest for Cardano has decreased recently, and the spot Cumulative Volume Delta (CVD) shows limited demand for ADA.
While short-term interest appears weak, larger Cardano wallets have been actively accumulating ADA, raising questions about potential price movements.

Analyzing Cardano's Supply Zones

Cardano Coinalyze Source: Coinalyze

In the last 24 hours, Cardano has faced a decline in Open Interest, and its spot CVD has not significantly improved, indicating that many investors are hesitant to bet on ADA in the immediate future due to weak demand.

Cardano Santiment Source: Santiment

Surprisingly, while market sentiment appears cautious, significant Cardano holders—often referred to as "whales"—have been accumulating more ADA tokens, as evidenced by the increasing share of ADA held by wallets containing 100,000 or more tokens. This raises the question: Will this accumulation translate into a price increase?

Cardano 1-day Chart Source: ADA/USDT on TradingView

The one-day chart reveals a bearish outlook, set against a larger bullish context. The critical support at $0.61 has so far held firm, but a supply zone exists between $0.70 and $0.737 that must be flipped to support for a recovery to take place. Until then, swing traders may continue to have a bearish perspective.

The Money Flow Index also indicates weak conditions, signaling that there isn't enough momentum or buying interest to push ADA prices higher.

Cardano Liquidation Heatmap Source: CoinGlass

Additionally, the liquidation heatmap illustrates that a potential move towards the $0.745 level might occur soon. However, this area represents a stronger resistance compared to lower levels like $0.64 or $0.58. This distance is a result of recent market movements.

Technical analysis identifies the supply level at $0.74, which aligns with the liquidation heatmap indicating it as a significant liquidity cluster. Therefore, should Cardano manage to rise to $0.75 in the forthcoming days, traders should remain cautious of a possible bearish reversal.