- ADA reverts to its latest support level after the recent sell pressure.
- ADA risks more downside as whales continue dumping despite the support retest.
Cardano’s ADA reverted to a bearish performance after the crypto market’s latest failed bullish attempt. As a result, ADA’s price action has once again pushed back to a previous support range
Realistic or not, here’s ADA’s market cap in BTC’s terms
ADA exchanged hands at $0.25 at press time, which means it reverted to its recent bottom range. The same range previously acted as a support range where accumulation has taken place. There is a perception that the same price range could act as the bottom for the current bear cycle considering ADA’s massive drawdown from its ATH.
Source: TradingView
The Money Flow Index (MFI) confirmed that ADA’s current support level was attracting a significant amount of accumulation. This means many traders expect the price to bounce off from the same support level. However, ADA has been struggling to secure bullish momentum for a good reason.
Whales are currently holding the bull hostage
On-chain data confirmed that whales were holding back ADA bulls. According to the supply distribution metric, addresses holding between 10 million and 100 million ADA coins (denoted in pink), have been trimming their balances in the last three days. The same category currently controls roughly 34.32% of ADA’s circulating supply.
Source: Santiment
The aforementioned whale category controls the largest share of ADA’s circulating supply, hence it has a bigger impact on the market. This means whales in this category are suppressing ADA’s price action. Some other whales including those in the 1,000 to 1 million ADA and 100 million to 1 billion ADA have been buying. However, this accumulation is not enough to support bullish dominance.
ADA holders expecting some bullish momentum should consider the aforementioned whale activity before going all in. In addition, the bullish reversion may weaken the current support line, potentially leading to capitulation and more downside.
Here are some interesting findings that may support the potential downside. The age-consumed metric concluded August with its largest spike in the last four weeks. The metric indicates that billions worth of ADA was moved on the same day after previously being held for a long time.
Source: Santiment
We also observed some downside in the mean coin age, indicating that coins previously hodled for a substantial duration were sold on the same day.
Read about ADA’s price prediction for 2024
ADA traders should now observe whether sell pressure will continue beyond its current price level, which will likely led to more downside if accompanied by low bullish momentum. Nevertheless, ADA may not experience much downside from the current level and there is still a significant chance that it has reached its cycle bottom or it might be near.
