- Retail investors are excited about ADA’s recovery; however, whales are taking advantage of it, having sold off 180 million tokens over five days to take profits.
- Cardano’s price rebounded from early-week lows, reaching above $0.63 after a bounce off strong support at $0.594.
- The coin is bullish if it stays above $0.60, but a fall below $0.50 indicates a deeper downtrend.
Recently, a pool of large Cardano holders (whales) sold about 180 million ADA tokens in just 5 days, as a slight upswing in the price of ADA took place. This was noted by crypto analyst Ali (@ali_charts), who believes that the selloff was simply due to the whales taking profit.
As shown in the chart he posted, there was a small upward price movement during the week, along with a decline in whale holdings. At press time, ADA’s price has increased by 1.6% in the last 24 hours, trading at $0.627.
The recovery has been slight, but it nearly erased the losses Cardano‘s native token recorded over the previous week. Before ADA began to recover, it faced selling pressure at the start of the week because of wider economic concerns in the global economy.
Therefore, the price collapsed for three consecutive days. However, buyers stepped in at the $0.594 mark, a level of solid support, coinciding with a rise in ADA’s price.
Cardano Holds Firm at $0.60 Amid Whale Sell-Off
Still, opportunities to buy ADA remain as long as the price is staying above the $0.60 mark. This means buyers are defending this level and not allowing the price to fall further.
An additional buying pressure could bring the coin’s price above $0.63. The next target for ADA’s price is the one corresponding to the 50-day Simple Moving Average, which is currently around $0.70.
If ADA can break above this level, it could continue its rise towards $0.83. However, should ADA break the support level below $0.59, the price may decline to the next support level at $0.50.
If $0.50 is breached towards the downside, it would indicate that the recent upward momentum is ending and further decline is likely. If that is the case, the next level where ADA could find some support could be around $0.40.