• ADA whales holding between 100 million and 1 billion coins have increased by 29% in the last month.
  • Despite the surge in whale activity, ADA’s price continues to face bearish sentiments.

Cardano’s [ADA] whale activity has witnessed a notable resurgence in recent weeks, with data from IntoTheBlock revealing a significant uptick in the number of whales holding between 100 million and 1 billion ADA coins. However, this surge in whale activity has not been sufficient to counter ADA’s 7% drop in value over the past month, as the altcoin struggles against prevailing bearish market sentiments.

As per IntoTheBlock’s on-chain data, the surge in ADA whales indicates growing interest and investment in the cryptocurrency. This surge in large investors underscores a bullish sentiment towards the long-term potential of Cardano. Despite this positive indicator, ADA’s current price stands at $0.43, reflecting a decline of 7% over the past 30 days, according to CoinMarketCap.

Market analysts are closely monitoring ADA’s key momentum indicators for insights into its future trajectory. The Relative Strength Index (RSI) for ADA currently sits at 37.42, indicating a momentum favoring coin distribution among market participants. Additionally, the Chaikin Money Flow (CMF) for Cardano is below zero, suggesting increased liquidity exiting the market, often a precursor to further declines in asset value. ADA’s CMF at -0.04 confirms this trend, while its positive directional index remains below the negative index on the Directional Movement Index (DMI), indicating a strong downtrend with an Average Directional Index (ADX) value of 29.

Despite these bearish indicators, ADA bulls are maintaining a crucial support level at their current price. However, if bearish momentum persists, ADA may breach this support level, potentially trading at $0.38. Conversely, if these bearish projections are invalidated, ADA’s price could rally towards $0.46, supported by the steady increase in activity in the coin’s futures market.

Coinglass data reveals that funding rates across cryptocurrency exchanges remain positive, indicating that futures traders are continuing to open long positions on coin. This suggests that, despite the ongoing price decline, market participants maintain a bullish outlook on the coin’s future performance.

In conclusion, while the increase in coin whales signals growing investor confidence in Cardano’s potential, the altcoin continues to face downward pressure in the current market environment. The interplay between whale activity and market sentiment will likely influence ADA’s price trajectory in the coming weeks, with analysts closely monitoring key indicators for insights into its future movements.

By Alex Wheeler

Alex is a lead writer at AltcoinsAnalysis, bringing the audience all leading developments in the blockchain industry and the latest trends in the cryptocurrency market.