- Cardano hinted that a bullish structure was starting to form, but the downtrend has yet to reverse.
- Buyers do not need to fall into FOMO (fear of missing out) just yet, but can wait for the pivot level to reverse to support.
The price of Cardano (ADA) surged by 35% from Monday, July 8 to Saturday, July 13. This rapid price increase can be attributed to increased buying by large holders.
The token’s long-term trend remains down, but the nearby psychological resistance level of $0.5 is likely to be a deciding factor in the coming days.
This would be a sign that the downtrend has reversed.
Source: ADA/USDT on TradingView
The 1-day price chart has moved above the recent low of $0.4235, which is encouraging in the short term. This is a sign of a structural change in the market, but there is no guarantee that an uptrend will follow.
The previous range lows and the $0.44-$0.475 support zone were solid resistance zones. There was also a bearish order block (red) in the $0.46-$0.5 zone. A daily session close above $0.5 would signal that the uptrend could continue. Until then, buyers should be cautious.
The daily RSI broke above the neutral 50 mark, another sign that momentum is turning bullish. The OBV broke above its two-week low, indicating that buying pressure is supporting the recent uptrend.
In the short term, a retest of the $0.42-$0.43 range could provide a buying opportunity targeting $0.46-$0.50.
Whale accumulation increased last month.
Source: IntoTheBlock
Looking at the 30-day change in ADA holdings distribution, we see that addresses holding tokens worth more than $10 million have increased by 6.93% over the past month.
This reinforces the idea that whales are hoarding money as the token price has been steadily declining in recent weeks.
Read our Cardano (ADA) Price Prediction 2024-25
Overall, it seemed likely that Cardano would rally to $0.50.
A break above that level would signal a longer-term uptrend, potentially extending to the important $0.57 and $0.68 levels seen earlier this year.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.