Cardano (ADA) is presently facing bearish pressure, its price being around $0.7874 after it fell 1.5% over the last 24 hours. The fall came after massive whale action, when more than 67 million ADA had been moved from Coinbase to off-exchange wallets, a signal of falling market supply. With investor sentiment low, Cardano has several technical problems that might drive its short- and medium-term performance.
Whale Activity Affects Cardano ADA
According to WhaleAlerts, the recent big move of 67,810,471 ADA that is valued at around $54.3 million has occurred. The move split across two accounts, with one holding nearly all the tokens. Such a movement usually will be interpreted as a bull signal; however, this time the sentiment in the market is not on its side. The transfer, which reduces available supply, happens while prices are declining and indicates investors selling assets.
Technical Analysis Points to Weak Momentum
Cardano’s technicals indicate diminishing momentum. Relative Strength Index (RSI) is at 44.12, indicating bearish conditions but has yet to reach oversold levels. Cardano dipped below the key support areas of $0.80 and $0.79, triggering alarms among traders. The rising trading volume of 31.33% to $1.11 billion indicates selling interest over buying interest.
Also, the establishment of a “death cross” on the price chart of Cardano indicates possible further downtrends. The formation would usually indicate that current price actions would equate to more significant declines if they were to be turned around in time.
Market Conditions and Regulatory Pressures
Larger market sentiment also cools Cardano. The current Bitcoin rise that brought it to $114,800 has coaxed liquidity out of altcoins such as ADA. This diversion occurs on the heels of growing risk aversion among investors, who would rather invest in more established ones during bad times.
In addition, the SEC’s withdrawal on a number of ETF filings, such as on Cardano, is an added pressure. This is a regulatory uncertainty that shatters hopes of institutional investment and market rebound, especially since analysts had long expected an “Uptober” rally based on ETF approvals.
As Cardano traverses this difficult terrain, its fate will be in the hands of whales as well as general market mood. This newest bear pressure, along with crashing technicals, is the rationale behind the assumption that ADA could still be in trouble unless drastic shifts in market perception or regulatory landscapes take place. Investors should pay attention to these developments.
