Cardano(ADA) Loses 10% Amid Declining Whale Presence

Cardano (ADA) has been down almost 34% in the last 30 days and more than 15% in the past week. Its market cap is now at $22 billion. It has been trading below $1 for over a month, reflecting persistent bearish sentiment.

Technical indicators show a strong downtrend, with ADX rising to 46.8, signaling intensified selling pressure. However, if key support levels hold, ADA could reverse its trend and potentially break above $1 in March.

Cardano ADX Shows the Current Downtrend Is Strong

ADA’s ADX is currently at 46.8, rising sharply from 10.3 on February 23. The Average Directional Index (ADX) measures the strength of a trend without indicating its direction.

It ranges from 0 to 100, with values above 25 signaling a strong trend and values below 20 suggesting a weak or non-trending market. An ADX above 40 indicates a very strong trend, showing that market participants are highly confident in the current price movement.

With ADA’s ADX at 46.8 and the price in a downtrend, it indicates that the bearish momentum is gaining strength. This suggests that selling pressure is intensifying, making a continuation of the downtrend more likely.

Unless buying interest increases significantly, ADA could face further downside. The high ADX value confirms that the current bearish trend is strong and persistent, reducing the likelihood of a quick reversal.

ADA Whales Just Hit Their Lowest Level Since Early January

The number of Cardano whales – addresses holding between 1 million and 10 million ADA – has been steadily decreasing over the past week, dropping from 2,477 on February 21 to 2,454 currently. This is the lowest level since January 9.

Tracking these whales is crucial because they represent large investors whose buying or selling actions can significantly impact market liquidity and price movements.

When whale addresses decrease, it suggests that major holders are either reducing their positions or distributing their holdings, which can indicate a bearish sentiment.

This sharp decline in the number of Cardano whales could signal increasing selling pressure, potentially leading to further downside for ADA’s price.

As large holders reduce their exposure, it can create more supply in the market, driving prices lower. Additionally, a decreasing number of whales suggests weakened confidence among big investors, which could trigger further selling from smaller holders.

If this trend continues, ADA could face increased downward momentum in the coming days.

Will Cardano Return to $1 In March?

ADA’s EMA lines currently show a bearish setup, with short-term lines positioned below long-term ones, indicating ongoing downward momentum.

ADA could test the crucial support level at $0.5 if this downtrend continues strongly. If this support is lost, the price could decline further to $0.32, marking its lowest level since early November 2024.

This bearish configuration suggests continued selling pressure, increasing the likelihood of further downside unless buying interest picks up.

However, if the support at $0.5 is tested and holds, Cardano price could find the strength to reverse its trend.

In this bullish scenario, ADA could rise to test the resistance at $0.65.

If that level is broken, the price could continue climbing to $0.83 and even $0.90, potentially paving the way for a rally above $1 for the first time since late January.