Cardano (ADA) has recently come into the spotlight due to some significant developments.
According to crypto trading analyst Ali Martinez, Cardano whales have been actively regrouping their holdings, selling or redistributing around 1.02 billion ADA tokens in just a week, amounting to a staggering $265 million.
This notable activity has raised questions within the ADA community and the broader crypto market, prompting greater scrutiny of its current state, particularly in relation to its support and resistance levels.
ADA chart analysis
At the time of writing, Cardano is trading at $0.257874, reflecting a modest increase of 0.58% on the day and a rise of 0.63% on the week. Although these gains are relatively small, they gain significance when considered in conjunction with ADA’s support and resistance levels.
ADA currently has support at $0.24346, indicating a price point where buying interest has historically been strong. Conversely, there is resistance at $0.27007, indicating a point where selling pressure tends to increase.
Cardano 1-day price chart. Source: Finbold
A key technical indicator that investors are watching closely is Cardano’s position relative to its 200-day SMA (Simple Moving Average). Currently, ADA is trading below this critical level, suggesting that bears may still have the upper hand. This precarious positioning is a cause for concern among market participants, especially given recent whale activity.
ADA performance
However, it is important to recognize that ADA’s recent performance has not been exactly stellar. Over the past year, ADA has seen a significant decline of 46%, making it one of the cryptocurrencies struggling to keep up with the bullish momentum of the overall market.
In the digital asset space, Cardano’s underperformance is even more evident. Over the last year, ADA has lagged behind 73% of the top 100 cryptocurrencies. Furthermore, it has been overshadowed by the giants of the crypto world, Bitcoin and Ethereum, making the challenges it faces even more evident.
Additionally, Cardano’s recent price action is a cause for concern as only 12 of the last 30 days recorded gains. This means that the cryptocurrency only recorded green candles on 40% of trading days, highlighting the bearish sentiment that has gripped the market.
Finally, it is important to acknowledge that ADA is down a staggering 92% from its all-time high, illustrating the magnitude of the challenge it faces in regaining lost ground.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
Source : finbold.com