- Cardano whales move millions, signaling reduced market supply and confidence.
- ADA struggles at $0.79, while resistance mounts at $0.87.
- RSI near oversold levels, hinting at possible further price decline.
Cardano (ADA) has experienced a significant shift in its price movement as the token faces downward pressure on the charts. As of the latest updates, ADA is trading at approximately $0.7898, reflecting a 2.05% drop. Although the price has recently decreased, an interesting occurrence took place earlier this week that might change the medium-term perspective of the asset.
According to Whale Alert, a significant transfer of ADA tokens was recorded, with 67,810,471 ADA being moved from Coinbase to external wallets. The estimated value of the transfer was $54.3 million, divided into two addresses.
The first address had 67.8 million ADA, and the second one had 2.2 million ADA. The transfer of significant quantities of ADA to external wallets is viewed as a positive indicator by society, as it is likely to decrease the supply within the short-term trading market, which reflects a belief in the future worth of the commodity.
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Price Support at $0.79 Remains Key
At the same time, the Cardano price action remains under pressure as it battles to maintain support at the $0.79 level. This is a very vital price zone that has been acting as a critical support level, which is being fought by ADA bulls. Once this support is breached, traders are now looking at the 0.75 level of the market as a secondary level of possible support.
Resistance is seen at the $0.87 level, which would need to be surpassed for a shift to a more bullish sentiment. The nearest possible targets in the event of a break above the year-end price of $0.87 would be $0.92 and possibly $1, at least considering the overall market sentiment and the price movement of ADA.
RSI Indicator Reflects Bearish Sentiment
Adding to the bearish outlook, the Relative Strength Index (RSI) for ADA is currently at 41.67, indicating that the asset is nearing oversold territory.
Worth noting, however, that the RSI is not yet in the extreme oversold category (under 30), and thus there may still be room to the downside of the ADA in the short term.
However, the whale activity and large transactions suggest that some investors are positioning themselves for a longer-term hold despite the short-term volatility.
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