- Whales have bought over 130 million ADA in the past 72 hours, signaling renewed interest.
- ADA faces bearish pressure with declining active addresses, negative MVRV, and liquidation risks.
In the last 72 hours, Cardano has seen a massive surge in whale activity, with over 130 million ADA purchased. At press time, Cardano [ADA] was trading at $0.5912, reflecting an 11.65% decline in the past 24 hours.
This recent surge in whale purchases could indicate a renewed confidence in Cardano, especially after a period of consolidation.
However, it remains uncertain whether this surge marks the beginning of a strong upward movement or if it is just a short-term fluctuation.
Cardano price action analysis: Key levels to watch
Cardano’s price action has been bearish over the past few weeks, with ADA recently breaking below important support levels. The price has been consolidating within a symmetrical triangle pattern, which suggests potential volatility ahead.
At press time, ADA was trading just above the $0.5928 level, which serves as crucial support.
If ADA fails to hold this level, it could fall further towards $0.5793. On the upside, resistance is seen at $0.6793, with a major resistance point at $0.9907.
Source: TradingView
Cardano daily active addresses: A worrying decline
Cardano’s daily active addresses show a noticeable decline, with just 24,407 active addresses. This is significantly lower than the previous highs seen in late 2024.
While whales are buying large amounts of ADA, retail participation is tapering off. This decline in active addresses indicates less interest in Cardano among smaller investors, which may lead to limited upward price momentum in the short term.
Source: Santiment
ADA MVRV ratio: Negative market sentiment
Notably, ADA’s MVRV ratio dropped to -6.05%, indicating that Cardano is currently undervalued relative to its historical price. This negative MVRV suggests that investors who purchased ADA at higher levels are now holding their positions at a loss.
Therefore, this could result in fewer buyers in the market, further suppressing price movement.
The negative MVRV ratio also signals that sentiment remains bearish, with fewer investors looking to take a risk on ADA at these price levels.
Source: Santiment
ADA liquidation heatmap: Increasing liquidation pressure
The liquidation heatmap shows a significant concentration of liquidations below the $0.60 level. This suggests that many leveraged positions are at risk if the price continues to decline.
As Cardano drops, it could trigger a cascade of forced liquidations, which would intensify the downward pressure on the price. Therefore, traders should be cautious, as the liquidation pressure could lead to a sharper decline if key support levels fail to hold.
Source: Coinglasss
Will whale activity trigger a price rally?
Despite the surge in whale activity, ADA faces several challenges, including declining daily active addresses, a negative MVRV ratio, and increased liquidation pressure.
These factors suggest Cardano is currently in a bearish phase, and the whale activity surge might not be enough to reverse the trend.
In conclusion, unless significant changes occur in market sentiment, ADA is unlikely to see a strong rally in the near term.
