Whales Dump ADA Amid Bearish Sentiment, Bulls Eye $1.65 Breakout

ADA, the native token of the Cardano (ADA) blockchain, is showing signs of upward momentum as it approaches $0.92, with analysts noting a convergence of technical and macroeconomic factors that could fuel further gains. At the time of writing, ADA is trading at approximately $0.8815, having risen 5% in the last 24 hours. The token is currently positioned within a rising wedge pattern, a bullish formation that has seen ADA forming higher lows and pushing toward key resistance levels. Analysts highlight $0.95 as the immediate resistance, with $1.05 marking the next pivotal barrier on the price chart [1].

Technical indicators such as the parabolic SAR, which remains below the current price, suggest that ADA could be primed for an upward breakout if it clears these levels. Fibonacci extensions on the chart point to potential price targets of $1.16, $1.40, and ultimately $1.65. This trajectory hinges on whether ADA can maintain its channel and confirm a bullish breakout. The support levels at $0.82 and $0.78 have held steady, offering a buffer against potential downside risks [1].

Meanwhile, whale activity has sparked both concern and speculation. Independent analyst Ali Martinez reported that large investors have offloaded 50 million ADA in just 48 hours, a move that could exert pressure on the short-term price. This activity has pushed ADA closer to the $0.80–$0.82 support zone, a level seen as critical for maintaining stability. Some analysts, however, suggest that this dip may be part of a familiar pattern where whales sell into strength and later reaccumulate during panic-driven selloffs [1].

Retail sentiment has also turned bearish. Santiment’s data reveals a sharp decline in the ratio of positive to negative comments on ADA, dropping to 1.5:1 from 12:1 in early August. This shift in sentiment, while discouraging for smaller investors, is often interpreted as a contrarian signal. Historically, bearish retail sentiment has preceded whale accumulation, and the recent rebound from $0.78 to $0.82 already suggests this pattern may be repeating [1].

The broader macroeconomic landscape is also shaping ADA’s prospects. The upcoming September Federal Reserve decision is being closely watched, with the odds of a 50bps rate cut rising to 17% from 11% previously. If the central bank adopts a more aggressive easing stance, it could boost liquidity in the market, supporting risk assets like ADA. Analysts suggest that such a move would align with ADA’s bullish chart structure and reinforce its potential to break out above $1.16 and $1.40, with $1.65 as the ultimate target [1].

In summary, ADA is currently navigating a decisive phase where technical indicators and macroeconomic conditions align to suggest a potential upward move. With key resistance levels in sight and support levels intact, the token appears to be on the cusp of a significant breakout. If ADA can sustain its current trajectory and confirm a bullish pattern, it could soon retest the $1 level and extend its rally toward $1.65, particularly if the Fed moves to ease monetary policy in the coming weeks.

Source:

[1] Cardano Price Eyes $1.65 As Sept 50bps Cut Odds Surge (https://coingape.com/markets/cardano-price-eyes-1-65-as-sept-fed-50bps-cut-odds-surge/)

[2] Cardano Whales Are Dumping, Traders Not Happy: Will ADA Price Hit New High? (https://finance.yahoo.com/news/cardano-whales-dumping-traders-not-081256153.html)