- Cardano shows early signs of a potential reversal as selling pressure subsides and whales accumulate $36 million worth of ADA.
- A break above $0.47 could target $0.50, while a drop below $0.34 would weaken the setup.
Cardano’s price has struggled in recent weeks, remaining about 12% lower monthly. However, several signals suggest that selling pressure is fading. On-chain data and technical indicators now suggest a potential shift, driven primarily by renewed whale accumulation and an improving internal price structure.
While the market has yet to confirm a clear recovery, the current setup resembles conditions that previously led to strong upside moves for ADA.
Bullish RSI Divergence Signals Waning Selling Pressure
A key technical development has appeared on Cardano’s daily chart. Between late November and mid-December, ADA formed a lower price low, while the Relative Strength Index recorded a higher low. This pattern, known as a bullish RSI divergence, often suggests that sellers are losing control even as the price continues to drift lower.
Historically, similar divergences in ADA have preceded notable recoveries rather than short-lived bounces. Earlier in this cycle, a comparable structure was followed by a near 30% rally within days. While history does not guarantee repetition, the resemblance has drawn renewed attention to Cardano’s current positioning.
Technical indicators alone are not enough. What strengthens this setup is how closely it aligns with on-chain behavior.
Cardano Whales Accumulate as Coin Activity Declines
On-chain data shows that Cardano’s large holders have begun adding during the recent price weakness. Wallets holding between 100 million and 1 billion ADA increased their balances by roughly 100 million ADA, valued at about $36 million. This accumulation occurred as overall coin movement declined.
The Spent Coins Age Band metric supports this shift. Coin activity peaked earlier in December, a period associated with heavier distribution. As that activity dropped, whale accumulation resumed. This pattern suggests that large holders tend to step in when selling pressure cools, rather than chasing rising prices.
Such behavior adds weight to the bullish divergence, showing that reduced selling is being met with deliberate accumulation from major players.
Key Price Levels That Will Confirm or Invalidate the Setup
Despite improving signals, Cardano still needs price confirmation. Initial strength would appear above $0.44, but the more decisive level sits near $0.47. A sustained move above this zone could open the path toward $0.50, a key psychological barrier that previously acted as resistance.
If accumulation continues and broader market conditions remain supportive, a move into the $0.50–$0.55 range becomes possible.
The downside risk remains clear. A drop below $0.34 would weaken the reversal case and suggest that selling pressure has returned. In that scenario, historical behavior indicates whales may reduce exposure again.
For now, Cardano stands at a critical juncture, with whale activity and technical structure hinting that the next major move may soon be decided.
MIGHT ALSO LIKE:Uniswap Fee Switch Goes Live as Community Vote Nears Completion
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
