Altcoins
This altcoin is quietly rising; will it overtake BTC, ETH or XRP in the long term?
Cardano price has reached the same consolidation point where it was stuck during the first half of 2023. Although the rally has met with a huge pullback, the current trading setup suggests that bulls could conquer the token shortly. ADA Awards has been trading under immense bearish influence despite a healthy rally in early 2024. The latest breakout suggests selling pressure may have abated, but ongoing consolidation suggests there is more room for a retest before the next bullish move.
To determine the likely bullish action, whale accumulation plays a significant role. Increased accumulation leads to an increase in optimism as more traders become bullish about the upcoming trend. Consequently, this leads to a notable growth in buying volume, increasing the pressure and causing a healthy rise in value. Unfortunately, whales have been constantly liquidating their ADA holdings, making traders pessimistic about the trend’s evolution. ADA Awards rally.
The above chart from Coinmetrics suggests that whales started liquidating shortly after ADA price was rejected from yearly highs. However, the number of wallets holding over 1 million tokens has climbed back above 1,150 after falling below 1,000 for a while. This increased whale activity could boost market participants’ confidence and the growing bullish momentum could also add fuel to the fire.
On the other hand, daily active addresses have been falling over the past few days, suggesting that bears may have taken their profits. A significant drop in selling pressure can be expected in the coming days, which could push ADA price beyond the current consolidation zone. However, before that, another 8-10% pullback could occur quickly, which could completely remove the selling pressure.
As seen in the chart above, ADA price is moving in a descending wedge and after a breakout, it is consolidating. The MACD shows a decrease in buying volume, but selling pressure has not yet built up. Furthermore, the RSI is neutral and holding around the highs, suggesting the continuation of an uptrend. Therefore, Cardano (ADA) bulls seem to be relaxing a bit as the major price action has not yet started.
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