Cardano (ADA) has had a transformative week, breaking out of the 3-month adjustment period that has been ongoing since October.
Referred to as the "3rd generation cryptocurrency", Cardano surged 76% this week, signaling a turning point for altcoins. This new momentum was driven by the re-engagement of large investors, or "whales", in the network, sparking an optimistic outlook.
ADA Sets New All-Time High
The recent price movements of Cardano have led to a significant increase in whale trading volume, with $11.5 billion traded by large holders over the past 5 days. This level of whale activity is the highest since May, 6 months ago. The re-engagement of large wallet holders, one of the most influential investor groups, suggests growing confidence in the price trajectory of ADA.
The participation of whales is a strong indicator of market sentiment, as these large players often move substantial capital. Their return indicates support for Cardano's current value and potential, and can further strengthen the stability of ADA. If whales continue to actively engage, Cardano can maintain its upward momentum and solidify its price position.
Technically, Cardano's momentum is supported by indicators such as the Relative Strength Index (RSI), which is currently in the overbought zone. Historically, overbought RSI has often triggered short-term corrections in ADA, suggesting that a temporary price decline may be on the horizon.
This overbought state warns that ADA may be at risk of profit-taking. If Cardano's price follows its historical pattern, some of the recent gains may be reversed, indicating that its rally could cool off in the short term. Investors will closely monitor this adjustment, as it may impact the market sentiment towards Cardano.
ADA Price Prediction: Must Secure $0.59 Support First
Cardano's price has surged 75% over the past 5 days, currently trading at $0.58. For ADA to break through the $0.59 resistance and move towards $0.60, it will require sustained macroeconomic support and strong buying interest.
Considering the current overbought signals, a correction could pull ADA down to $0.54. This decline would provide a stable support level, but further gains would require sustained momentum.
If Cardano bounces back from the $0.54 support, it could trigger a new rally. However, if it drops below this price, the bullish expectations may be invalidated, and ADA could revisit $0.46 as a new support level.
