- The number of ADA whales that hold between 100 million and 1 billion coins has increased in the last month.
- However, ADA’s price remains plagued by bearish sentiments.
Cardano’s [ADA] whale activity has seen a significant resurgence in the last month, according to data from IntoTheBlock.
Information from the on-chain data provider showed that the number of ADA whales holding between 100 million and 1 billion ADA coins has increased by 29% in the past 30 days.
Source: IntoTheBlock
However, due to the general market pullback in the last month, the surge in ADA’s whale activity has failed to impact its price. At press time, the altcoin exchanged hands at $0.43.
According to CoinMarketCap’s data, its value has fallen by 7% in the past 30 days.
Where might ADA be headed?
Although the number of ADA’s large investors has increased in the last month, there has been a general decline in the demand for the altcoin.
Readings from its key momentum indicators observed on a one-day chart confirmed this.
ADA’s Relative Strength Index (RSI) was 37.42 as of this writing. This indicator signaled a high momentum of coin distribution among market participants.
Further, the coin’s Chaikin Money Flow (CMF) rested below its zero line as of this writing. This indicator measures the flow of money into and out of an asset.
When its value is below zero, it suggests increased liquidity exit from the market. This is known to precede a continued decline in an asset’s value.
At press time, ADA’s CMF was -0.04.
Confirming the strength of ADA bears, the coin’s positive directional index (green) was positioned below its negative index (red).
When these lines of an asset’s Directional Movement Index (DMI) are set up this way, the downtrend is strong.
With an Average Directional Index (ADX) value of 29, ADA’s downtrend was strong at press time.
At its press time price, ADA bulls are maintaining a crucial support level. However, if bearish momentum climbs, ADA may breach support to exchange hands at $0.38.
Conversely, if these bearish projections are invalidated, the coin’s price may initiate a rally toward the $0.46 level.
Source: ADA/USDT on TradingView
Read Cardano’s [ADA] Price Prediction 2023-24
This is possible because of the steady uptick in activity in the coin’s futures market, suggesting that despite the ongoing price decline, market participants continue to maintain a bullish outlook.
According to Coinglass’ data, the coin’s Funding Rates across cryptocurrency exchanges remain positive. This signals that futures traders have continued to open long positions.
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