Cardano Struggles as Whales Dump 120M ADA, Will It Rebound Past $0.70?

Cardano dropped from $0.70 to $0.61, now recovering at $0.6607 with a 1.45% gain.
Whales sold 120 million ADA in 48 hours, reducing holdings from 5.84B to 5.71B.
Resistance at $0.72 includes golden pocket and Fair Value Gap, possibly triggering high volatility.

Cardano (ADA) has been caught in a storm of price swings over the past week, moving in tandem with broader market trends. Starting at $0.70 on March 29, the price tumbled to $0.61 by April 3 before staging a minor recovery to $0.66. At the time of writing, ADA trades at $0.6607, marking a modest 1.45% gain in the last 24 hours but a sharp 5.92% drop over the past seven days.

A key factor behind ADAs decline appears to be aggressive sell-offs by major holders. Data from market analyst Ali Martinez revealed that whalesinvestors holding between 1 million and 10 million ADAoffloaded around 120 million ADA in just 48 hours. Their collective holdings shrank from 5.84 billion to 5.71 billion ADA, intensifying the downward pressure on the cryptocurrencys price.

Source: Ali_Charts

Further insights from IntoTheBlock highlighted shifting ownership trends. While long-term investors (Hodlers) saw a 0.22% decline, mid-term investors (Cruisers) increased by 6.77%, and short-term traders dropped by 16.36%. Whale concentration also decreased by 1.68%, with their share of ADA supply at 8.48%, while retail investors now hold 71.17%.

Can Cardano Break Past Resistance?

Despite the turbulence, analysts remain optimistic about Cardanos future trajectory. Technical analysis on the 4-hour candlestick timeframe suggests that ADA has managed to break out of a descending channel that had kept it in a corrective phase for several days. This development could play a pivotal role in shaping ADAs performance throughout April. If the momentum holds, traders might start positioning for a move past the $0.70 mark.

However, the $0.72 region presents a strong resistance zone, combining two crucial technical elements: the golden pocket and a Fair Value Gap (FVG). The golden pocket, situated between the 0.618 and 0.65 Fibonacci retracement levels, often acts as a tough barrier for prices attempting an uptrend. Crypto analyst TehThomas has pinpointed this zone as a key challenge for ADA.

Source: Trading View

The Fair Value Gap, created by a rapid price drop in March, also looms in this region. Price action often gravitates toward such imbalances before resuming its broader trend. If ADA approaches this level, heightened volatility is likely. A decisive break above could open the door to further gains beyond $0.70, while rejection might force a pullback before another upward push.

Bullish Calls on Cardanos Long-Term Future

While short-term price action remains uncertain, some analysts are making bold predictions for Cardanos long-term prospects. Millionaire investor Alex Becker, once a skeptic of ADA, has now placed it among his top picks for explosive growth. In a recent YouTube discussion, he listed Cardano as one of eight cryptocurrencies he expects to see a 15x surge by 2026.

Becker pointed to ADAs fast as hell network and its position as one of the most decentralized blockchains, second only to Ethereum, as key factors behind his bullish outlook. He went further, forecasting that Cardano could climb to between $3 and $5, far surpassing its current levels.

For now, Cardano finds itself at a crossroads. If whales continue offloading their holdings, short-term struggles may persist. However, if bullish momentum builds and critical resistance levels fall, the asset might regain its footing and set the stage for a much stronger rally.

Text source: TronWeekly

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