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- ADA’s price printed a 1.94% loss over the last 24 hours according to CoinMarketCap.
- A long-term bearish chart pattern has formed on the altcoin’s chart, which may force ADA’s price to drop to $0.3282.
- A daily close above the 9-day and 20-day EMA lines will invalidate the bearish thesis and will see ADA rise to $0.3959.
Crypto intelligence portal IntoTheBlock has taken notice of unusual activity on the Cardano network. Earlier this week, an anomaly was observed, indicating a significant increase in the inflow of Cardano tokens among large holders. Specifically, there was a notable surge of 154.75 million ADA from Monday to Tuesday, suggesting a substantial influx of tokens into the wallets of investors holding at least 0.1% of the total supply. According to IntoTheBlock’s analysis, this surge could indicate strong buying activity with the token.
This surge in inflows to the wallets of major ADA holders marks the largest increase since early May. Importantly, this surge did not coincide with an outflow from these holders’ wallets. This implies that the tokens did not come from redistribution among large addresses or exchanges but were acquired from the market itself. However, it’s crucial to note that this activity does not guarantee a positive outcome. Similar characteristics were observed during the last surge of large holders in Cardano on April 27, which was followed by a steady decline in the ADA price, resulting in an 8.5% loss up to the present day.
Since the spike observed from Monday to Tuesday, the price of the Cardano token has increased by 2%. Nonetheless, the future trajectory of its bullish momentum remains uncertain. Whether this recent price increase will continue or diminish remains a significant question for Cardano investors and enthusiasts.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 1.94%, taking its price down to $0.3709 at press time. The Ethereum-killer’s market cap stood at $12.928 billion as a result.
Meanwhile, ADA’s 24-hour trading volume stood at $187.068 million, following a 24-hour decrease of 8.58%. Furthermore, the price of ADA was nearer to its 24-hour low of $0.3669, while the altcoin’s daily high stood at $0.3798.
The recent drop in ADA’s price was not enough to flip the altcoin’s weekly price performance into the red. At press time, ADA’s weekly performance remained in the green at +2.95%.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
ADA’s price was able to break above the key resistance level at $0.3751 following a 3+% move on Wednesday evening. The altcoin was unable to maintain a position above this mark, however, as its price dropped back below the level just 24 hours later.
In addition to dropping back down below the key price point, ADA also lost the support of the 9-day and 20-day EMA lines on its 4-hour chart over the past 24 hours. As a result, a bearish flag was on the verge of being triggered, with the 9-day EMA line looking to cross below the 20-day EMA line.
Furthermore, one bearish flag was recently triggered as the RSI line on the 4-hour chart recently crossed below the RSI SMA line. The indicator also suggested at press time that ADA’s price would continue to fall in the following 24-48 hours, given that the RSI line was negatively sloped towards the oversold territory.
Should these bearish technical flags be validated in the next 24 hours, ADA’s price could drop toward $0.3617. If the sell pressure continues, then the altcoin’s price may drop further to around the next key support level at $0.3533.
On the other hand, a close today above $0.3751 will invalidate the bearish thesis and ADA will look to flip the aforementioned $0.3751 resistance into support before possibly making a move toward $0.3941 in the next 24-48 hours. Risk-averse traders may want to wait for ADA to close a daily trading session above the $0.3751 mark before entering into a long position.
Daily chart for ADA/USDT (Source: TradingView)
A long-term bearish head and shoulders pattern has formed on ADA’s daily chart. Despite this, the altcoin has been in an ascending price channel since 30 December of last year after it printed higher lows and higher highs since then. Should the bearish chart pattern be validated in the next few days, ADA’s price will likely drop to $0.3282.
On the other hand, ADA’s price reclaiming a position back above the 9-day and 20-day EMA lines will invalidate the bearish thesis. This will also result in the altcoin’s price climbing to $0.3959 in the following 24-48 hours. Traders will want to watch the daily RSI line for the next 48 hours. The daily RSI line crossing below the daily RSI SMA line will be an early indication of ADA’s price dropping down to $0.3282.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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