The price of Cardano (ADA) is showing weakness, approaching the key support level of $0.60. However, large investors (whales) have significantly increased their Cardano whale accumulation in the last 48 hours. Data from the on-chain analytics platform Santiment reveals that these wallets added 70 million ADA tokens.
This buying move equates to approximately $42 million. The recent activity has pushed this investor group’s total holdings to their highest level in five months. Specifically, addresses holding between 1 million and 10 million ADA are leading this trend. Their behavior suggests strong confidence in the asset, as they interpret current prices as an opportunity zone.
On the other hand, ADA’s price action has struggled to sustain recent recovery attempts. The asset has registered lower lows, creating uncertainty among retail investors. Nonetheless, whale activity is often a leading indicator. They tend to move against the general market trend, which means they seek to accumulate during times of fear or price weakness.
Can the MACD Confirm a Bullish Crossover for ADA?
Furthermore, technical analysis offers mixed but hopeful signals. The MACD (Moving Average Convergence Divergence) indicator shows easing bearish momentum. The red bars on the histogram are receding, suggesting that selling pressure is diminishing. This aligns with the whale accumulation. An eventual bullish MACD crossover could confirm a short-term trend reversal.
Currently, ADA is trading at $0.61, just above the vital $0.60 support. If this support level holds firm, Cardano could bounce towards $0.62. The next resistance target is located in the $0.66 zone. However, if selling pressure returns and the price loses the $0.60 support, the token’s economy could face further declines. The next levels to watch in a bearish scenario would be $0.57 and even $0.54.
The divergence between the falling price and the strong whale accumulation presents a key scenario for Cardano. Investors are watching to see if the $0.60 support can act as a springboard. The behavior of large holders will be crucial in the coming days, determining whether ADA manages to reverse its bearish trend or if it instead seeks lower supports.
