Journalist
Posted:
- ADA’s whale sell activity increased as Google searches for “Is Cardano a good investment?” surge by 90%.
- The most important level for Cardano as of recent price action is $0.64 and could determine next ADA move.
The offloading of Cardano [ADA] by whale accounts saw a collective over 170 million tokens being sold.
The decline in the number of ADA held by the large holders confirmed the sharp fall in the wallet balances from just under 3.26 billion ADA to nearly 2.98 billion ADA.
This mass sale coincides with a notable drop in ADA’s price, decreasing from around $0.83 to $0.65 during the same period. This clearly outlined as the holdings reduced over time, the price also fell.
This primarily suggested a bearish sentiment among major holders, possibly anticipating a further drop in price.
Conversely, the sell-off could present a buying opportunity for new or existing investors looking to capitalize on the lower price, potentially stabilizing the market.
Source: X
This saw the Google search trends increase in interest for various assets with Cardano’s surging by 90% as TapTools noted on X. So, there was a significant uptick in public curiosity about its potential as an investment.
Similarly, Polkadot [DOT] and Luna Classic [LUNC] have each seen their search volumes double, with increases of 110%, pointing to heightened market attention possibly due to recent developments or price changes.
Silver also showed a substantial rise in interest at 100% as Intel’s “Breakout,” confirmed the sudden spike in searches.
How will ADA react?
Looking at the price action of ADA, based on Fibonacci retracement levels from the peak and trough of its last bull cycle, showed that ADA was trading around a pivotal support level at $0.65.
This comes as the broader altcoin market faces an extended correction since the end of mid-January.
A sustained hold above this mark could set the stage for an upward move towards $1.00, and potentially to $3.00, aligning with a long-term resistance near the 0 Fibonacci level at $3.00.
A more pronounced bullish scenario could see ADA strike the $7.50 price levels and beyond.
Conversely, a drop below $0.65 could trigger a descent towards the $0.30 area, where ADA previously consolidated for an extended period.
This potential downturn could confirm the bearish momentum shift in the current market sentiment.
Source: Trading View
Notably, the Stochastic RSI suggested that the current market conditions might be nearing oversold territory, which could hint at an upcoming recovery if bullish momentum accumulates.
In essence, ADA’s immediate trajectory hinges on its ability to sustain above $0.65.
Breaching $1.00 could confirm the bullish scenario towards $3.00, while a drop below $0.65 would likely lead to retesting foundational support levels.
