- Cardano trades at $0.6446 with slight recovery but faces whale-driven selling pressure.
- Over 100M ADA sold as bearish patterns like the descending channel and rising wedge form.
- A break below $0.63 could lead to $0.54, though short-term upside liquidity may trigger a bounce.
- Climbing Bitcoin dominance adds pressure on ADA and other altcoins.
Cardano (ADA) is flashing mixed signals as the price tests key support levels while facing selling pressure from large holders. With technical patterns hinting at a possible correction, ADA’s next move could define its short-term trajectory.
At the time of writing, Cardano is trading at $0.6446, reflecting a 1.08% increase in the last 24 hours. The token records a 24-hour trading volume of $1.25 billion and a market capitalization of $22.75 billion. Despite this slight recovery, key indicators point toward rising caution in the market.
Whale Dump and Technical Patterns Suggest Downside Risk for ADA
Crypto analyst Ali pointed out that, over the past week, Cardano whales have offloaded more than 100 million ADA, triggering concerns of increased volatility and downward pressure. This significant sell-off by large holders comes at a time when ADA is trading within a descending channel, a chart pattern typically associated with bearish momentum.
Moreover, the analyst highlighted that, on the 4-hour chart, ADA is also forming a rising wedge pattern, which is historically a bearish signal. While the token is currently holding firm above the $0.63 support level, a breakdown below this point could lead to a sharp move lower, potentially targeting the $0.54 zone. This level represents a key historical support area where buyers may step in again.
However, short-term relief is still possible. ADA is sitting near a key support zone within the wedge, increasing the likelihood of a short-term pump. Additionally, the market may be eyeing upside liquidity, a cluster of stop-loss orders and liquidations that could be swept before a potential move down.
Bitcoin Dominance Rises as Altcoins Face Pressure
Another critical factor is the current trend in Bitcoin Dominance (BTC.D), which is on the rise. When BTC.D strengthens, altcoins like Cardano often face downward pressure, as capital rotates into Bitcoin. This dynamic could add additional resistance to any upside moves in ADA.
Despite near-term concerns, the long-term outlook for Cardano remains bullish. The project continues to build on its ecosystem, and broader crypto market sentiment still leans positive. However, traders are urged to manage risk carefully, avoid over-leveraging, and wait for confirmed signals before making major entries.
Cardano is at a pivotal level. While upside liquidity may offer a temporary bounce, bearish chart patterns and whale sell-offs suggest caution. A break below $0.63 could open the door to $0.54, while holding above it keeps hopes alive for a short-term rebound.
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