Cardano (ADA) has been facing challenges in breaking through a significant resistance level despite backing from major investors and an improving market environment.
Although ADA's price remains below crucial resistance thresholds, the increased accumulation of ADA by large holders suggests a favorable opportunity for the altcoin to break out. If market conditions continue to improve, Cardano might experience a positive shift in price momentum.
In April, whales holding between 10 million and 100 million ADA boosted their holdings by purchasing over 420 million ADA, valued at around $289 million. This consistent accumulation by major Cardano holders signals a high level of confidence in the asset.
Whale activity plays a substantial role in potential price movements of ADA, and their ongoing accumulation indicates strong belief in the token's long-term value. As these influential holders increase their positions, the likelihood of a price surge also increases.
Overall, Cardano's momentum seems to be improving, as indicated by technical indicators such as the Relative Strength Index (RSI), which is currently hovering around a two-month high in the positive zone. This bullish momentum is driven by both whale accumulation and favorable broader market conditions.
With the backing of whale activity and the strength of the RSI, Cardano could soon witness a notable price increase. This technical resilience, combined with the continued accumulation by whales, sets the stage for ADA to potentially break through key resistance levels, paving the way for broader adoption and price appreciation.
As of now, Cardano's price stands at $0.69, just shy of the $0.70 support level it held earlier. Failure to breach the $0.74 resistance resulted in a minor price dip, keeping ADA in a tight range but leaving room for a breakthrough with sustained market improvements.
The $0.74 resistance level has proven challenging for ADA for over five weeks; however, with ongoing whale accumulation and positive macro indicators, Cardano could eventually surpass $0.74 and aim for $0.80. A successful breach of $0.74 could signal the start of a more steadfast bullish trend.
However, if ADA struggles to sustain levels above the $0.66 support, it might impact whale confidence. A drop below $0.60 would undermine the optimistic outlook, potentially triggering a deeper correction and delaying ADA's ascent to higher price levels.