Cardano floating above $0.70 could retest $0.53 as whales dump ADA amid price uncertainty.
As Bitcoin fluctuates near $83,000, Cardano struggles to hold the fort at $0.70. Witnessing the sideways shift over the weekend, the short-term dominance at the $0.70 psychological mark leads to a consolidation range.
However, the recent surge in whale activity raises concerns of a potential downturn. Will this lead to an ADA price drop to $0.53?
Cardano Price Consolidation Warns Sharp Move Ahead
On the daily chart, Cardano’s price trend shows a consolidation range between the 38.20% and 50% Fibonacci levels, which are at $0.6673 and $0.7746, respectively.
Currently, Cardano is trading at $0.7219, with an intraday recovery of 2.44%. This counters the evening star pattern formed by a 5.61% drop on Sunday.
As the sideways trend continues, technical indicators remain neutral. The Bollinger Bands are moving sideways, while the MACD and signal lines are near the zero line. However, the negative alignment of the average lines warns of a potential bearish outcome.
Cardano Whales Exit Amid Uncertainty
Amid the uncertain Cardano price trend, ADA whales are cashing out. According to crypto analyst Ali Martinez, the past week has seen a major shift in Cardano whale holder value.
Based on the data from Santiment, the analyst highlights whales selling 100 million ADA tokens in the past week. This has reduced the holding value of addresses with 1 million to 10 million ADA tokens to 5.89 billion.
ADA Price Targets
As the exit of whales signals a potential breakdown of the consolidation range, the Fibonacci levels point to a price target at the 23.60% level. This crucial Fibonacci level aligns with the long-term support trendline and is slightly above the $0.50 psychological mark.
On a bullish note, a potential recovery above the 50% Fibonacci level at $0.7746 would mark a significant buying opportunity, potentially pushing the price towards the $1.00 psychological level.