Cardano (ADA) is going through a challenging week with a over 10% drop, indicating bearish sentiment. Despite this, whale activity and a key demand zone suggest a potential reversal. Stay tuned for ADA's progress and imminent recovery outlook!
The cryptocurrency Cardano (ADA) has experienced a challenging week, dropping by over 10% in value. This decline follows a significant market structure change, leading investors to take a bearish stance. However, some encouraging signs are emerging, hinting at a possible recovery on the horizon.
ADA broke below a support level of an uptrend in place since April 7, signaling market weakness and a shift in traders’ sentiment. This shift has triggered a wave of selling, with sellers gradually gaining the upper hand.
However, the correction brought ADA back to a key demand zone that had previously acted as support and attracted significant buying interest. Analysis of on-chain data by CryptoQuant revealed that whales had started accumulating large buy orders as ADA approached this demand level.
This surge in whale activity suggests strong investor interest at these levels and could indicate the formation of a base for a trend reversal.
Currently, this demand zone is in focus. Buyers seem to have regained control, with ADA up around 3% in the last 24 hours. This could be an early sign of bullish pressure building.
If demand continues to rise, ADA might attempt a rebound. However, the overall long-term trend could still remain bullish, especially if Bitcoin and the rest of the market sustain their positive momentum.
With a Point of Control (POC) and significant liquidity at $0.709, ADA may struggle to reclaim its breached downtrend line above $0.72 to reignite a short-term uptrend.
If it fails to hold above this $0.72 level, ADA could target the next demand zone around $0.62-$0.57.
The 12H RSI has bounced back nicely but has not returned to oversold territory. The Woodies CCI is approaching the zero line, signaling a potential trend reversal and imminent bullish momentum. The upcoming days could be positive for ADA if market conditions align for an uptrend.
In a bullish scenario, ADA could reach as high as $0.83 or $0.97 if it manages to decisively break through the $0.72 level with volume.
The critical question is whether ADA will recover or decline further. The current demand zone is holding for now, but with weak support. Buyers’ inability to seize the available momentum could lead to another wave of selling, while sustained buying, particularly from large wallets, could trigger a final rebound.
The next few days will be crucial in determining ADA’s direction. If the demand zone continues to hold, Cardano could bounce back and erase its heavy losses from the week.
Here are simple steps to purchase ADA on Bitget before a potential uptrend:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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