Cardano price at risk of dropping below $0.5 as whales begin to sell off
e experienced a significant downturn, dropping 38.6% from $1.17 to $0.72 over the past two weeks. This decline broke through the daily EMAs (20, 50, 100, and 200), strengthening the control of sellers in the market.
With the recent whale selling activity and the breakdown of EMAs, Cardano faces a potential 16% decrease to reach the lower boundary of the triangle pattern. Since November 2024, the coin’s price has been moving within the confines of two converging trendlines of the triangle pattern. A breach of the lower support could push ADA below $0.5.
However, the trendline at $0.6 has historically served as a significant accumulation zone for ADA buyers since mid-November 2024. Previous market cycles from this support level have resulted in substantial price increases ranging from 50% to 155%.
If ADA manages to find buying support around the $0.6 mark, it could potentially trigger a bullish reversal in the near future. Renewed buying interest at this level might lead to a resurgence in ADA’s price trajectory.
In conclusion, Cardano’s price is currently facing downward pressure due to whale offloading and the breach of key support levels. However, historical price movements suggest that a bounce back from the $0.6 support level could pave the way for a renewed bullish momentum in the market.
As the cryptocurrency market continues to evolve, monitoring whale activity and key technical levels is crucial for understanding potential price movements in Cardano and other digital assets. Stay informed and stay vigilant in navigating the ever-changing landscape of the crypto market.
