Cardano Plummets 25%: Whales Hedge Bets Amidst Bearish Storm

Cardano (ADA) has experienced a significant price drop of over 25% in the past week, with its market cap falling to $26 billion. Trading volume has also decreased by 35% in the last 24 hours, indicating a decline in market activity. Meanwhile, whale addresses have stabilized after a brief surge, suggesting a period of balance as large holders await clearer market signals.

The Average Directional Index (ADX) for Cardano has climbed from 11.2 to 41.6 within five days, indicating a strong downtrend that coincides with a 20% price correction. ADX measures trend strength, with readings above 25 indicating a strong trend. Despite the recent stability in ADA's ADX, the trend remains powerful, reinforcing bearish momentum. However, a slight decline in ADX suggests that the trend may be losing intensity, potentially leading to consolidation if the price steadies.

The number of Cardano whale addresses, holding between 1,000,000 and 10,000,000 ADA, has remained stable over the past few weeks after a brief spike in mid-January. This stability suggests a period of balance, with large holders neither aggressively accumulating nor selling. They may be focusing their investments on other coins for possible gains in February, indicating a consolidation phase for ADA price.

Cardano price is currently trading between support at $0.65 and resistance at $0.82, with its EMA lines showing a bearish setup. If an uptrend emerges, ADA could test the $0.82 resistance, and a breakout above it could open the door for a move toward $1.03 or even $1.16, a potential 55% upside. However, if the downtrend continues and ADA price loses the $0.65 support, it could drop further to $0.51 or even $0.32, marking a 55% decline and reaching its lowest levels since December 10, 2024.