- Cardano couldn’t reclaim an important level of support.
- The network’s accumulation was reflected in the on-chain metrics, although whales were a bit slower than 2020.
Cardano [ADA] Moved past local resistance area at $0.5. The move was made at $0.5.
His region also left an imbalance on the daily timeline when the prices plummeted below that level on April 24th, and was unable to turn the psychological support into a physical one.
At the moment of writing something similar is repeating. Although the price rose above the threshold on May 20, it dropped below the threshold again, trading at $0.482.
Does the outlook for on-chain metrics look more positive?
Supply distribution has not yet reflected a whaling accumulation
Source: Santiment
The distribution of wallets with 1k-100k ADA decreased since the 30th Nov 2023.
Wallets between 10M and 100M ADA experienced a steep decline in January 2023, but slowly climbed back up in 2024.
The growth in both cohorts has been reduced compared to that of the rally 2020-21. It is possible that history will not repeat itself and that such an increase in whale stocks may not happen.
However, in the current state of affairs, it is not clear that whale wallets would be interested in adding Cardano.
Source: Santiment
Also, the social metrics did not impress. Since more than two month, the social volume is trending down. Since March, the weighted sentiment is overwhelmingly negative.
Are bulls encouraged by the levels of liquidation?
Source: Hyblock
A heatmap of liquidation with a lookback period of 1 month showed that $0.5 is an important zone for liquidity. It was swept, and ADA then saw a reject.
The chart shows that the price may consolidate around $0.477, before the next rise to $0.525.
This consolidation will allow more short positions to be built up and increase the liquidity available overhead.
Source: Hyblock
Short and long positions appeared to be more or less equal in the near term. Recent pullbacks from $0.51 have wiped out late long-entrants.
Is your portfolio green? Have you checked out your portfolio? ADA Profit Calculator
Liquidation Levels Profile showed more short positions than long positions to be imminently vulnerable.
Next, the large clusters of $0.479 (high lever), $0.475(medium leverage), and $0.466 ($low leverage) are targets for downside.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
