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- Following Cardano’s 20% price drop this week, whale investors have taken advantage of the dip, accumulating 300 million ADA worth nearly $200 million.
- Cardano’s price drop is partly due to its correlation with Bitcoin, which has also slumped, but a rebound may be on the horizon.
Despite a steep 29.7% decline in Cardano’s (ADA) price over the past month, whales have been aggressively accumulating the cryptocurrency. In the last week alone, addresses holding between 10 million and 100 million ADA have added a staggering 300 million ADA, worth nearly $200 million. This level of accumulation suggests that large investors view the current price levels as a buying opportunity, anticipating a rebound in the near future.
Cardano’s price movement has been increasingly tied to Bitcoin (BTC), meaning it has mirrored BTC’s recent downward trajectory. Bitcoin has fallen 11.1% in the past week and 2.79% in the last 24 hours, partly due to global economic uncertainty caused by Donald Trump’s newly imposed 25% tariffs on the European Union (EU) and the confirmation of additional tariffs on Canada and Mexico. These trade tensions have affected traditional financial markets and spilled over into the cryptocurrency sector, leading to increased volatility.
As a result, ADA has dropped 1.4% in the last 24 hours and 14.4% over the past week, reflecting broader market uncertainty. Additionally, Cardano’s trading volume has slightly decreased by 0.82%, settling at $881.63 million. However, if Bitcoin stages a recovery, ADA could follow suit and regain lost ground.
Key Support and Resistance Levels
Currently, ADA is holding above the critical support level of $0.62 and is currently trading at 0.6744 just 78.21% shy from its all time high of 3.10 seen in 2021. If whale accumulation continues, Cardano could attempt to break the $0.70 resistance. However, failure to breach this level may lead to a pullback to $0.62.
According to Coincodex, Cardano’s price is projected to rise by 2.91%, reaching $0.704208 by March 28, 2025. However, current technical indicators paint a cautious picture, signaling a bearish market sentiment.
The Fear & Greed Index currently stands at 21, indicating Extreme Fear, which suggests that investors are hesitant and market confidence is low. Additionally, the 14-day Relative Strength Index (RSI) is at 35.24, a level that typically signals oversold conditions, meaning ADA could be nearing a potential reversal if buying pressure increases. However, the 50-day Simple Moving Average (SMA) remains at $0.87924, reflecting the coin’s longer-term downward trend.
Adding to the bullish sentiment, we recently reported that the U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale Investments’ February 10 filing for a spot Cardano exchange-traded fund (ETF). This marks a significant step in the regulatory approval process, signaling a shift in the SEC’s stance on crypto, contrasting the harsher approach seen during Gary Gensler’s tenure as SEC chair. If approved, the ETF could pave the way for increased institutional investment in ADA.
