- Cardano is holding firm at $0.58 as it forms a descending triangle pattern, signaling a decisive move ahead.
- Accumulation and rising wallet numbers hint at strength, but a breakdown remains possible.
Cardano (ADA) is at a critical juncture, with its price testing the key support level of $0.58. A descending triangle pattern has formed on the charts, placing resistance at $0.612 and support near $0.537. This setup signals that ADA is approaching a major price decision—either a breakout above the triangle or a significant breakdown if support gives way.
Despite sideways price action, ADA has maintained its $0.58 support, suggesting resilience amid broader market uncertainty. Technical indicators remain mixed, with the MACD nearing a bullish crossover, hinting at easing selling pressure. Still, a drop below $0.551 could invalidate bullish hopes, leading to a bearish wave formation.
Cardano Exchange Data Suggests Accumulation Behind the Scenes
Supporting the bullish case, trading activity for Cardano remains robust. ADA has recorded over $381 billion in trading volume over the past year, ranking it among the most traded digital assets globally. Meanwhile, funding rates across major exchanges like Binance and Bybit remain neutral to negative—an environment often ripe for a short squeeze if buyers regain control.
Exchange netflow data highlights steady outflows, meaning more ADA is being withdrawn from platforms than deposited. This trend suggests long-term holders are accumulating, not selling, despite the flat price. On-Balance Volume (OBV) is also rising slightly, further indicating stealth accumulation.
Growing Wallet Base Reinforces Long-Term Strength
ADA’s holder base is expanding steadily. Over the past six months, the number of unique wallets holding Cardano has grown to 4.5 million, marking a new high even as prices dipped from $0.90 to $0.58. This increase in adoption during a period of price weakness suggests deepening trust in Cardano’s long-term value.
The Path Ahead: Breakout or Breakdown?
Cardano’s future now hinges on whether it can break above the descending triangle’s resistance around $0.60. A clean breakout could propel ADA toward the $0.67–$0.70 zone. Conversely, a daily close below $0.52 would signal weakness and possibly start a larger downward move.
With accumulation trends strengthening and volatility compressing, ADA sits at a crossroads. Traders are watching closely—because whichever direction breaks first could shape Cardano’s path in the weeks ahead.
ALSO READ:The Truth Behind Cardano (ADA)’s Struggle to Surpass $1
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