Cardano (ADA) has had a volatile week, marking a break from a three-month accumulation period due to downward pressure since October.
Often dubbed the “3rd Generation Cryptocurrency,” Cardano recorded a 76% gain this week, signaling a potential turning point for the altcoin. This new recovery has sparked a wave of optimism, especially as large investors, or “whales,” are returning to interact with the network.
Cardano Records New High
Cardano’s recent price action has fueled a significant increase in whale trading volume, with a total of $11.5 billion traded by major holders in just the past five days. The last time Cardano saw this level of whale activity was more than six months ago, in May. The return of large wallets, often the most influential investment groups, shows growing confidence in ADA’s price roadmap.
Whale participation is a strong indicator of market sentiment, as these large players often move large amounts of capital. Their return means a guarantee of Cardano’s current value and potential, which can add stability to ADA. If whales continue to be active, Cardano could maintain its upward momentum and strengthen its price position further.
On the technical front, Cardano’s momentum is supported by indicators such as the Relative Strength Index (RSI), which is currently in overbought territory. Historically, RSI in the overbought zone has often triggered short-term corrective moves for ADA, signaling that a temporary decline in price is possible.
This overbought condition causes caution as it implies that ADA may be at risk of profit-taking selling. If Cardano price follows historical patterns, some of the recent gains could be reversed, leading to a short-term cooling off in the bullish momentum. Investors are likely to be watching this closely, as any correction could affect broader market sentiment towards Cardano.
ADA Price Prediction: Trying to Protect Rising Momentum
Cardano’s price has increased 75% in the past five days, trading at $0.58 at the time of writing. If ADA wants to break through the $0.59 resistance and head towards $0.60, it will need continued macro support and a strong flow of buying interest to maintain the pace.
Ahead of current overbought indicators, a correction could drag ADA down to $0.54. This decrease will provide a stable support level but also shows that sustained momentum is needed for further breakthroughs.
If Cardano bounces back from the $0.54 support, it could trigger a new bullish wave. However, if the price goes below this level, it will invalidate growth expectations, potentially sending ADA back to $0.46 as new support.