Key Insights:
- Cardano whales have sold 180 million ADA tokens, raising concerns about a potential price crash.
- ADA formed a bullish cup and handle price action pattern on the daily chart.
- According to the data, $0.672 is a strong resistance level where traders have built $38.80 million worth of short positions.
ADA, the native token of the Cardano blockchain, has been struggling following a recent price increase. The ongoing struggle is fueled by traders’ bearish outlook and continuous whale sell-offs.
Additionally, negative market sentiment is contributing to the challenges faced. These factors collectively push the Cardano prediction toward a bearish trend.
Cardano Prediction: Whale Selloffs and Market Sentiment Impact
Ali Charts recently shared on X that Cardano whales capitalized on the recent upswing. They offloaded over 180 million ADA tokens, intensifying selling pressure in the market. This substantial sell-off occurred over just five trading days.
Such a significant sell-off by industry giants during market uncertainty increases selling pressure. This could adversely affect the asset’s price, influencing the Cardano prediction.
ADA was trading near $0.626 at press time, recording a 1.35% price surge over the past 24 hours. However, during the same period, investors and traders appeared disinterested in the asset, leading to a 20% drop in trading volume.
Cardano Price Action and Key Levels
Expert technical analysis suggests tough days ahead for ADA, despite signs of a bullish price action pattern emerging. This aligned with the current Cardano prediction, reflecting uncertainty amidst challenging market conditions.
The daily chart showed that the asset appears to be forming a bullish cup and handle pattern. However, the price was consolidating, and the pattern struggled to be completed due to the recent dump.
However, on the four-hour time frame, ADA price has been consolidating within a tight range between $0.598 and $0.624, which could determine the Cardano prediction for the coming days.
A bullish trend may emerge if ADA breaks out of its narrow range and closes a four-hour candle above $0.625. This could trigger a 10% price surge. The value could climb to $0.68 in the coming days.
On the other hand, the Cardano prediction will turn bearish if ADA’s four-hour chart falls below $0.58. If this happens, it could pave the way for a 12% price decline. The token could drop to the $0.515 mark in the coming days.
This prediction suggested that ADA was currently at a make-or-break level. Additionally, the price has been trading below the 200 Exponential Moving Average (EMA) on both the four-hour and daily time frames. This indicated that the asset was in a downtrend and exhibited weak momentum.
Bearish Trends and Over-Leveraged Positions Shape Cardano Prediction
Traders hold a bearish outlook, as the on-chain analytics firm Coinglass reported. Recent data indicated traders were over-leveraged in the past 30 days.
The support level was $0.592, while resistance stood at $0.672. During this period, they have built $23.06 million worth of long positions and $38.80 million worth of short positions. This indicated a bearish sentiment toward Cardano.
However, these levels may be liquidated if the ADA price moves significantly in either direction. Traders’ strong bearish bets, combined with recent whale sell-offs, suggest that bears dominate the market.
This scenario intensifies selling pressure. Consequently, the asset may experience a further price decline.