- ADA trades below 50, 100, and 200-day moving averages, signaling a strong bearish trend.
- Whale outflows increase as millions of ADA are moved from exchanges to wallets.
- Over 100,000 new ADA wallets added in 60 days, showing growing network participation.
Cardano (ADA) has declined 5.4% over the past 24 hours and is now trading at around $0.5766. The daily chart shows that the ADA price has broken below the 50-day, 100-day, and 200-day moving averages.
The Relative Strength Index (RSI) stands at 33.23. This level suggests ADA is nearing oversold territory, though momentum indicators remain weak. A continued drop could see prices move toward the lower boundary of the descending parallel channel, which currently sits near $0.42.
Market analyst Deezy_BTC noted that ADA is trading below a key support level at $0.61. According to the chart, the $0.42 level has acted as the channel bottom since November 2024. Without a recovery above $0.61, further downside pressure may continue in the short term.
Whale Activity Points to Long-Term Holding Behavior
Large holders of ADA, often referred to as whales, have been transferring millions of tokens away from centralized exchanges. Market observer Jack reported on social media platform X that these outflows are growing and may suggest reduced sell-side pressure.
“This trend usually means investors are moving assets to private storage rather than preparing to sell,” Jack wrote. This often reflects expectations for longer-term price recovery.
These movements come as Cardano’s founder, Charles Hoskinson confirmed continued development in RealFi projects. The network aims to connect DeFi and traditional financial services, particularly in Africa. Plans are underway to increase Cardano’s Total Value Locked (TVL) into the billions by 2026.
Network Growth Supports Potential for Future Recovery
Recent data from TapTools indicates that over 100,000 new ADA wallets have been created in the past two months. This steady growth reflects ongoing user interest and community participation.
Despite the recent price drop, some chart watchers believe ADA may be forming a double-bottom near the $0.60 range. If confirmed, a breakout above $0.66 could pave the way for $0.75 or even $0.85, provided trading volumes improve.
Cardano’s expanding DeFi sector may also support future price action. Lending platforms and RealFi integrations are showing steady growth, which could help increase token demand over time.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
