Cardano’s ADA has witnessed a downward trajectory over the past week, with buyers unable to reverse the trend. As Bitcoin struggles to maintain its momentum above $26,000, leading altcoins including Cardano are feeling the pressure, leading to bearish expectations among traders. Still, hope is emerging as a flurry of large trades occurs near ADA’s price drop, signaling potential accumulation and an upcoming big move.
Whales are bullish amid ADA price drop
Whales often see a dip in trending altcoins as a profitable opportunity to enter. Consequently, they accumulate huge amounts of the altcoin, creating buying momentum on the chart, which can lead to a price increase. Cardano is currently in such a scenario.
Data from IntoTheBlock indicates a significant increase in the number of large transactions on September 25. The figures show that the whale shift was almost $3 billion, with the value increasing from $4.7 billion to $7.4 billion. Interestingly, this activity emerged after ADA’s price drop to a low of $0.24. This appeared to be an accumulation as it created a strong support level for the ADA price, preventing it from falling further.
However, bearish undertones remain as the Open Interest (OI) metric has seen a significant decline over the past week, falling by more than $8 million. This signals declining interest in ADA trading given its inability to cause notable price volatility.
With Cardano’s volatility down to 24.3%, potential buyers may be put off. Moreover, the long/short ratio for Cardano shows a negative trend. The current ratio stands at 0.76, with 56.5% of positions leaning towards short traders. Conversely, bullish traders hold 43.5% in long positions, eliminating upside momentum for ADA’s price. This could lead to increased selling pressure at resistance points.
What’s next for the ADA award?
Cardano’s ADA recently reached a crucial support level at $0.24, indicating that bearish momentum continues to dominate the altcoin. However, buyers are aggressively defending an immediate decline as ADA price has reversed the trend of the dip, indicating buying demand is at a lower level. At the time of writing, Cardano price is trading at $0.2454, up over 0.5% in the last 24 hours.
Currently, there is a glimmer of hope for the bulls as the RSI is showing a bullish divergence below the midline. For a positive shift, the bulls must quickly push the ADA price past the descending trendline. If this is achieved, it could negate a bearish possibility, potentially sending the price higher to $0.28.
Conversely, if the bears push the price of ADA below $0.23, the short positions will be strengthened. This could lead to a decline towards $0.22 and possibly even a target of $0.189.
