- Cardano is hovering near a key support level, with potential for either a breakout or further downside.
- Whale activity shows significant ADA offloading, raising concerns about sustained bullish momentum.
- The market remains indecisive, with key resistance at $0.70 – $0.72 and downside targets at $0.50 if support fails.
Cardano (ADA) is at a crucial turning point as the price flirts with a key support level. If the asset fails to reclaim this level soon, it could trigger a significant move, potentially leading to further downside or a strong breakout.
The current market structure indicates sideways movement with a slight upward trend, but momentum remains uncertain as sellers continue to apply pressure.bAt the time of writing, Cardano is trading at $0.6785, with a 24-hour trading volume of $1.30 billion and a market capitalization of $23.90 billion.
Despite a 0.29% price increase in the last 24 hours, ADA remains stuck within a narrow consolidation range, with support at $0.66 and resistance at $0.68. While a breakout attempt is forming, the market remains cautious.
Cardano Whale Activity Signals Caution
On-chain data from Santiment highlights significant whale movements, with large holders offloading nearly 200 million ADA tokens throughout March.
This heavy selling pressure raises concerns about ADA’s ability to sustain a bullish breakout. Historically, such whale activity has preceded increased volatility, which could influence ADA’s short-term direction.
Technical Indicators and Key Levels to Watch
Market analysts have identified $0.83 as a critical daily support zone, yet the broader price action remains bearish. Despite this support level, ADA continues to face downward pressure, reflecting uncertainty in market sentiment.
On the daily chart, ADA shows signs of persistent bearish momentum, indicating that sellers remain in control. The hidden support (LS) on the daily timeframe is holding within an uptrend but remains fragile, suggesting that any breakdown could lead to further losses.
The weekly neutral zone highlights indecisiveness in price action, as the market awaits confirmation of the next major move. This lack of direction keeps traders cautious, with both bullish and bearish scenarios still in play.
Meanwhile, the formation of the monthly candle hints at a potential bearish shooting star pattern. This suggests strong downward pressure from the open to the close, reinforcing concerns of a continued downtrend.
ADA Potential Price Scenarios
The Ichimoku indicator on daily and weekly timeframes suggests that ADA’s current support level is vulnerable. If the price fails to break above the $0.70 – $0.72 resistance zone, further declines could follow, with downside targets at $0.55 – $0.53 and, in a worst-case scenario, $0.50.
For bulls to regain control, ADA must decisively reclaim the $0.70 – $0.72 range and establish a new higher high. Until then, the market remains in neutral territory, with a risk of a bearish breakdown if key supports fail.
Traders and investors should closely monitor ADA’s response to the $0.66 level in the coming days. A confirmed breakdown could trigger increased volatility, while a successful reclaim could fuel a fresh bullish rally.
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