Cardano's ADA Rallies 6% as Whales Hold Steady

Cardano (ADA) price has risen by 6% in the last 24 hours, bringing its market capitalization to $34 billion. The cryptocurrency is attempting to reclaim the $1 level, but its short-term trend remains uncertain. Technical indicators suggest mixed signals, with the Average Directional Index (ADX) indicating weak momentum. Despite this, whale accumulation has remained stable, suggesting a lack of strong buying pressure.

The ADX is currently at 15.3, down from 22.2 three days ago, following Cardano's announcement of upcoming changes. Values below 20 signal weak or non-existent trends, while readings above 25 indicate a developing trend. The current drop in ADX suggests that ADA's trend has lost strength and is entering a more indecisive phase. As a result, price movements may remain range-bound until ADX begins to rise again.

The number of ADA whale addresses, which hold between 1 million and 10 million ADA, currently stands at 2,473. This number has remained within a tight range of 2,465 to 2,476 over the past 15 days. Large holders can significantly impact market liquidity and price action, and an increase in whale addresses often signals accumulation. However, the stability in Cardano whale addresses suggests that large holders are neither aggressively accumulating nor offloading their positions. This could imply a wait-and-see approach, where whales are positioning themselves for the next major move rather than actively shifting their exposure.

ADA price is currently hovering near its support at $0.95, a critical level that could determine its next move. If this support is tested and fails to hold, selling pressure could increase, pushing ADA down toward $0.87. A break below this level would signal a continuation of the downtrend, reinforcing bearish momentum. However, its Exponential Moving Averages (EMAs) suggest that a golden cross could form soon, which would indicate strengthening bullish momentum. If this crossover happens, ADA price could test the $0.99 resistance, potentially pushing it to $1.03, a potential 20% upside.