Cardano Eyes Recovery After 5-Day Decline Will ADA Reclaim $0.92?
- ADA shows signs of recovery after five consecutive days of losses.
- Whales have accumulated 180 million ADA tokens, increasing bullish potential.
- A breakout above $0.7351 (67.8% Fibonacci level) could fuel a rally toward $0.92.
After facing a decline over the past week, Cardano (ADA) is showing its first green candle in five days, signaling a potential trend reversal. The daily chart shows an intraday bounce, with ADA testing key Fibonacci levels.
Currently, ADA fluctuates between the 50% ($0.6272) and 61.8% ($0.7351) Fibonacci levels, which are critical for determining the next move. A successful break above $0.7351 could confirm a bullish reversal, while failure to hold above $0.65 could lead to further downside pressure.
Whales Accumulate 180 Million ADA A Bullish Signal?
Despite the recent decline, on-chain data indicates that large investors are actively accumulating ADA. Crypto analyst Ali Martinez reported that whales with 1 million to 10 million ADA tokens have added 180 million Cardano coins to their holdings in the past week.
This accumulation has pushed total whale holdings to 6 billion Cardano, suggesting that institutional investors and major traders see the recent dip as a buying opportunity. Historically, such whale activity has preceded strong price recoveries.
While the recovery signals optimism, technical indicators present mixed signals. DMI Indicator shows a negative crossover, with VI lines moving sideways, indicating a lack of strong bullish momentum.
RSI has dipped below the 50 mark but is attempting to recover, suggesting weakening selling pressure.
In the short term, ADAs key resistance stands at $0.7351, the 67.8% Fibonacci level. A breakout above this point could pave the way for Cardano to test $0.9216 (78.6% Fibonacci level).
However, if bearish pressure resumes, ADAs first major support is at $0.65, followed by the 50% Fibonacci level at $0.6272.
Read more: https://thenewscrypto.com/cardano-eyes-recovery-after-5-day-decline-will-ada-reclaim-0-92/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
