The Key Takeaways
Cardano being accumulated by whale owners?
The chart of supply distribution revealed that ADA wallets containing 100k+ tokens had been accumulating for the last six weeks.
Cardano price forecast: What do these numbers mean?
This information, when viewed in the context of short-term sentiment and price movements on the market, suggests that a bullish ADA rally is not likely to happen for the time being.
Cardano [ADA] It was trading at $0.61, just below the local support. It then saw a 11.4% rise in just four days, to reach $0.694. It retraced to a 4% decline in the last day on the charts.
Bitcoin’s [BTC] Indecisiveness in the workplace $116k mid-range resistance Forced a drop in prices across the entire market.
Source: Coinalyze
Cardano The Open Interest for CVD spot also dropped over the last day, while its open interest barely rose. They all suggested that speculators were unwilling to bet on ADA for the near-term due to the weak demand of the altcoin.
In the 24 hour period prior to press, rates also declined.
Source: Santiment
Recent Cardano wallets with larger amounts of ADA have continued to collect ADA, in contrast to short-term ambivalence. This was evident by the increasing share of ADA that came from wallets holding 100k or greater ADA tokens.
Hence, the question – Will this whale accumulation inspire a price rally?
Checking out the supply zones over Cardano
TradingView: ADA/USDT
In the 1-day frame, a bullish structure was highlighted (yellow). It is part of a larger context that’s more bullish (white 1-week timeframe). The $0.61 level is crucial for recovery. The support has been maintained so far.
A supply zone was apparent (red box), between $0.7 and $0.737. For a rally to begin, the resistance has to become support. Swing traders may remain bearish until then.
Money Flow Index is also still weakly negative. It was a clear indication that ADA lacked the momentum and buying pressure needed to move higher.
Source: CoinGlass
Finaly, the heatmap of liquidation showed that an upward move to the level $0.745 was probable in the coming weeks. Due to price movement in the past 24 hours, the magnetic zone above was slightly stronger than $0.64 and $0.58.
It was noted in the technical analysis that there is a supply of $0.74 and it appears on the heat map. This may indicate a liquidity cluster. Therefore, traders must be on guard against a possible bearish turn, even if Cardano rebounds to $0.75 within the next days.
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Source: ambcrypto.com
