Altcoins
This altcoin is quietly rising; will it surpass BTC, ETH or XRP in the long run?
Cardano price has reached the same consolidation point where it was stuck during the first half of 2023. Although the rally has met with a huge pullback, the current trading setup suggests that bulls may take over the token soon. ADA Price has been trading under immense bearish influence despite a healthy recovery in early 2024. The latest breakout suggests that selling pressure may have faded, but the ongoing consolidation suggests there is more room for a retest before the next bullish action.
To ascertain the likely bullish action, whale accumulation plays an important role. Increased accumulation leads to increased optimism as more traders become confident about the upcoming trend. Hence, this leads to a noticeable growth in buying volume, increasing the pressure and causing a healthy increase in value. Unfortunately, whales had been consistently liquidating their ADA stocks, due to which traders became pessimistic about the ADA Price rally.
The above chart from Coinmetrics suggests that whales started liquidating soon after ADA price met rejection from yearly highs. However, the wallet count holding more than a million tokens has risen back above 1150 after falling below 1000 for a while. This increased whale activity could create more confidence among market participants, and the growing bullish momentum could also add fuel to the fire.
On the other hand, daily active addresses have been decreasing in the past few days, which suggests that the bears may have taken their profit. A significant decrease in selling pressure can be expected in the coming days, which could lift the ADA price above the current consolidation zone. However, before that, another 8%-10% pullback could quickly approach, which could remove the selling pressure completely.
As seen in the above chart, ADA price has been trading inside a falling wedge and is consolidating after a breakout. The MACD shows a decrease in buying volume, but selling pressure has not built up yet. Furthermore, the RSI is neutral and is holding near the highs, suggesting the continuation of an uptrend. Therefore, Cardano (ADA) bulls seem to be relaxing a bit as the main price action is yet to begin.
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