Cardano price prediction – Whales unlikely to send ADA’s price soaring just yet!

Key Takeaways

Is Cardano undergoing accumulation from whale holders?

The supply distribution chart revealed that ADA wallets with 100k + tokens have been accumulating over the past six weeks.

What does that mean for Cardano’s price prediction?

Placing this information within the context of price action and short-term market sentiment, a bullish ADA rally might be unlikely for now.

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Cardano [ADA] was once trading just above the local support at $0.61. Later, it saw an 11.4% bounce in four days to climb to $0.694. However, in the last 24 hours, it retraced by 4% on the charts.

Bitcoin’s [BTC] indecisiveness at the $116k mid-range resistance forced a price dip across the market.

Cardano also saw a drop in Open Interest in the last 24 hours, and its spot CVD barely climbed higher. Together, they suggested that speculators have been unwilling to continue betting on ADA in the short-term, on the back of weak spot demand for the altcoin.

The funding rate also fell over the past 24 hours, although the rates remained positive at press time.

In contrast to the short-term ambivalence, the bigger Cardano wallets have continued to accumulate ADA lately. Evidence for this was the rising share of the ADA supply that was made up of wallets with 100k or more ADA tokens.

Hence, the question – Will this whale accumulation inspire a price rally?

Examining the supply zones above Cardano

The 1-day timeframe highlighted a bearish 1-day timeframe structure (yellow) within the larger bullish context (white, 1-week timeframe). In other words, the $0.61 support is critical for recovery. So far, it has been defended.

There seemed to be a supply zone (red box) from $0.7-$0.737. This resistance must be flipped to support to initiate a recovery. Until then, swing traders can remain bearishly biased.

The Money Flow Index has remained weakly bearish too. In fact, it signaled that ADA had neither the momentum nor the buying pressure to spark a move upwards.

Finally, the liquidation heatmap showed that a move higher to the $0.745-level was likely in the coming days. The magnetic zone overhead was stronger than the $0.64 or $0.58 zones, though slightly farther away due to the last 24 hours’ price action.

Technical analysis highlighted the supply at $0.74, and the liquidation heatmap agreed that it may be a notable liquidity cluster. Therefore, even if Cardano bounces to $0.75 in the coming days, traders should be wary of a bearish reversal.