Cardano (ADA), the 9th largest crypto asset by market cap continues to be stuck in a rut after last month’s candle closed on a bearish note above thinly veiled support of $0.8, two months after the price fell below the $1 support.
Generally, ADA has plunged over 74% since tapping an all-time high of $3 in early September 2021 and over 25% in the past 30 days making it one of the largest losers this cycle. As of writing, the cryptocurrency is trading at $0.83, inside a megaphone structure which suggests that the price is about to bounce off of its current lows.
That said, despite taking a hit in the last two or so quarters, ADA whales seem to have pounced on multiple opportunities to buy the cryptocurrency. According to data from the on-chain analytics firm Santiment, whale addresses holding 1M to 10M ADA have been accumulating their bags in the past 5 weeks, taking advantage of price dips including February’s lows.
In context, ADA whales in that category have added 196M more ADA after 7 months of dumping, all the while selling only 1.7M ADA.
Further, ADA’s Dormant supply metric stayed relatively inactive towards the end of April suggesting that long-term holders are not dumping their holdings at low prices and are probably waiting for the price to turn around. This is seen after a closer evaluation of accounts between 100k and 1M coins showed that their supply distribution dropped in April.
Technically, ADA’s price is flirting in the oversold territory suggesting a possible turnaround. On April 30, the RSI briefly fell below 30 while the Stochastic Oscillator fell below 25. This week, traders continue to keep a close eye on the two indicators as they attempt to rise above the said levels suggesting an uptick could be around the corner.
That said, although most fundamentals continue to align with the possibility of price turning around, this is not a suggestion that price could push higher. Considering various macroeconomic indicators including mounting fears over the upcoming Interest rate hike by the Fed Wednesday, ADA bears could flex their muscles further, especially if larger coins including Bitcoin yield.