As of the time of writing, the trading price of Cardano [ADA] is $0.354. Over the past 24 hours, the ADA price has fluctuated between $0.35 and $0.36, but the volatility has not been significant. During this period, trading volume has not shown any significant changes.
ADA has been in a descending triangle pattern on the daily chart. This indicates that each time ADA tries to rise, the sellers push the price down.
The descending triangle is now narrowing, suggesting that ADA is entering a consolidation phase, and then it will break out of this channel (whether upward or downward).
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The uptrend is facing strong resistance at the 0.618 Fibonacci level ($0.36). Each time ADA tests this resistance level, the price either stagnates or declines. This indicates that there are fewer and fewer buyers willing to interact with ADA at this price.
If ADA breaks above the $0.36 resistance and overcomes the obstacle of the descending triangle's upper boundary, the bulls may take over and support its rise to $0.40.
Conversely, if Cardano fails to hold the $0.33 support level, it will confirm the continuation of the downtrend.
From a technical indicator perspective, the likelihood of an upward breakout is greater. The Chaikin Money Flow (CMF) has entered the positive territory for the first time in two weeks, highlighting the increase in buying pressure.
The Awesome Oscillator (AO) bars are green but negative. This suggests that although the overall trend is still bearish, a bullish reversal may be underway.
Spot Net Flows Indicate Active Sellers
Spot exchange net flow data shows that Cardano sellers have been active, with a significant increase in inflows to the exchanges.
However, during the same period, Cardano has also experienced persistent capital outflows, indicating a clear tug-of-war between sellers and buyers.
For buyers to take the lead, both retail and whale traders need to show interest. While whales only control 8% of the ADA supply, a surge in large transactions could trigger volatility and revive positive sentiment.
However, the whales seem to be hesitant. As of the time of writing, the volume of ADA transactions over $100,000 has declined from 19.92 billion to 16.94 billion, a decrease of 15%.
According to Market Prophit's data, the reduction in whale activity is in line with the smart money's bearish sentiment on Cardano. However, due to the positive crowd sentiment, retail interest remains high.
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