- Cardano whales accumulated 420 million ADA in April, showing confidence as the price remains below $0.70.
- While technical indicators hint at growing buyer strength, a breakout above $0.74 is still needed to confirm a bullish trend.
Despite a flurry of buying from major holders, Cardano (ADA) remains trapped below a critical resistance level, leaving traders questioning whether a breakout is near or more sideways action is ahead.
Whales Bet Big on Cardano
In April, Cardano whales — those holding between 10 million and 100 million ADA — purchased over 420 million ADA, worth approximately $289 million. This accumulation raised holdings from 12.47 billion ADA to 12.89 billion, signaling strong long-term confidence.
Whale activity is often viewed as a leading indicator in crypto markets. These investors typically have deep market insight and their moves can influence broader sentiment. With whales loading up on ADA, many retail traders are beginning to take notice, hoping this accumulation phase leads to a breakout rally.
ADA Struggles to Break Out
However, the price of Cardano hasn’t followed suit. At the time of writing, ADA is trading at $0.67 — slightly below the $0.70 level it held earlier in the week. Although the token briefly touched $0.74, it quickly retraced, keeping it locked in a tight range.
This marks the fifth consecutive week that ADA has failed to close above $0.70. A successful breakout above $0.74 could spark a push toward $0.80, but such momentum has yet to materialize.
Signs of Strength — or Caution?
On a positive note, the Relative Strength Index (RSI) on the daily chart is now in the bullish zone, reaching levels not seen in nearly two months. This suggests buying pressure is increasing, and a trend shift might be underway.
Still, caution is warranted. If ADA dips below $0.66, it may trigger a wave of selling, potentially dragging the price down to $0.60. Such a move could shatter the current bullish outlook and delay any near-term rally.
The heavy accumulation by whales paints a bullish long-term picture for Cardano, but until the price can decisively break above resistance, the short-term outlook remains uncertain. Traders will watch closely to see if whale optimism drives price action or if ADA stays range-bound.
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.
