Cardano whale activity has stabilized since December 22nd. This suggests less selling pressure, indicating an impending end to the consolidation. Traders are keeping a close eye on the $0.859 support level as its strength will determine whether the ADA price can soar towards the dollar or face another decline to $0.76.
The ADA’s decline is breathtaking
ADA’s ADX is currently at 14.96. Its value has plummeted from a score of over 30 just three days ago. This significant decline indicates a weakening of the strength of the current trend. The downtrend is finally losing steam.
ADX’s sharp decline highlights reduced conviction in the current bearish movement. While the consolidation could end, we could even hope for a reversal and buyers re-entering the market.
The ADX measures the strength of a trend on a scale of 0 to 100 without indicating the direction of the trend. Values below 20 indicate little or no trend. On the other hand, values above 25 generally signal a strong trend. With Cardano’s ADX at 14.96 and mostly bearish, the current downtrend lacks enough strength to sustain significant bearish momentum.
In the short term, this could mean that the price of ADA could stabilize. This is unless there is renewed selling pressure to strengthen the trend. Conversely, a lack of selling activity could allow buyers to regain control. It could gradually start a potential recovery.
Cardano whales have been discontinued
The number of ADA whales, defined as addresses with 10 to 100 million ADAs, hit a monthly high of 409 on December 14 before beginning to decline.
Since December 22nd, this number has stabilized between 404 and 405, indicating that major holders have suspended significant accumulation or distribution.
Watching whale activity is essential because these large holders can have a significant impact on the price of an asset. Either by your buying or selling behavior. The recent stabilization of Cardano whale addresses suggests that the market is in a consolidation phase, without accumulation or strong distribution.
In the short term, this could mean that the ADA price could remain range-bound as whale activity lacks decisive directional pressure.
Price forecast: is the dollar a realistic target?
Cardana price is currently trading near the critical support level at $0.859. If this support remains strong and the price of ADA is able to return to the uptrend, the price could test the resistance at $0.91.
A break of this resistance could pave the way for the Cardana price to rise, possibly testing the levels around $0.99 and $1, signaling a significant recovery and a shift towards bullish momentum.
On the other hand, if the downtrend resumes and the $0.859 support does not hold, the Cardana price could face further downward pressure.
In this scenario, the price could continue to decline and test the next major support level at $0.76. This would mean another potential correction of 11.6% for ADA.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with a professional before making any financial decision.