The post Cardano (ADA) Shows Resilience Amid Bearish Trends and Whale Dominance appeared on BitcoinEthereumNews.com.

Cardano (ADA) has been exhibiting a bearish trend with continuous lower highs and frequent double-top patterns. The Bollinger Bands indicate low volatility, while the flat MACD suggests a lack of momentum. Despite recent poor performance, Cardano’s on-chain data reveals robust support and a significant increase in total value locked (TVL) in DeFi applications. Cardano’s price trends bearishly, but on-chain metrics reveal strong support levels and increased DeFi activity, hinting at potential resilience and future recovery. Deep Dive into ADA’s Investor Dynamics ADA’s price movement primarily reflects bearish sentiment as evident from consistent lower highs since early June. Interestingly, despite this negative trend, ADA has shown a surprising upward movement in its on-chain metrics. The recent surge in total value locked (TVL) in its DeFi applications now exceeds previous records from the 2021 bull market, indicating burgeoning interest and confidence among DeFi users. Institutional Investors and Whale Activity A crucial aspect of ADA’s market is the involvement of large-scale investors, or whales, who hold a significant portion of the total supply. Around 28% of ADA’s supply is controlled by these large investors, according to recent data. Their active participation is highlighted by the $34.46 billion in large transactions over the past week, suggesting ongoing high-stakes engagements, possibly influencing price stability and market sentiment. The consistent pattern of lower highs aligns with ADA’s current consolidation phase, as noted from tight Bollinger Bands indicative of low volatility. ADA’s price has been predominantly below key moving averages, reinforcing the bearish outlook. However, the RSI hovering between 50 and 60 points to a neutral market sentiment with a slight bullish inclination. Technical Indicators: A Closer Look Upon closely analyzing ADA’s technical indicators, the chart reveals numerous double-top formations, a common bearish reversal signal. The Bollinger Bands’ tight configuration suggests that the market is experiencing a…

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Filed under: News - @ June 17, 2024 5:24 am