• Cardano price has been in a downtrend, losing bulls' support, trading at $0.328.
  • The W bottom pattern hints at a 6.7% upswing to $0.367, but the uptrend can extend to $0.367. 
  • A daily candlestick close below $0.299 will invalidate the bullish thesis for Cardano.

Cardano price has been following the broader market’s bearish cues making it difficult for the price to breach its immediate resistance level. However, certain cohorts of ADA holders are indicating a possible shift in trend, which might be appealing to bullish traders.

Cardano price has whales' support

Cardano price has been attempting recovery for days now but has so far failed to breach its immediate resistance at $0.345. Following the failed attempt, ADA retraced lower to retest the support level at $0.320, forming a double bottom, also known as the 'W' pattern. This price pattern is usually indicative of a trend reversal and the beginning of a potential uptrend which is what is expected from the so-called “Ethereum-killer”.

Currently trading at $0.330, Cardano price will look to tag the resistance level at  $0.345, which marks the neck line of the double bottom pattern. Flipping this resistance level into a foothold will be crucial for the altcoin to break higher and revisit the $0.371 barrier. This move would constitute a 12% gain when measured from the current position.

ADAUSD 4-hour chart

ADAUSD 4-hour chart

Interestingly, whales holding between 100,000 to 1,000,000 ADA have started accumulating again, which is a proxy of these smart money investors. The last time these whales started buying ADA was between late February and early March when Cardano price dropped 30%. During this period, the number of these investors spiked by 5.3% from 21,630 to 22,800, and the so-called “Ethereum-killer” rallied 50% in the next three weeks.

Since the same cohort has started accumulating again after a 30% slump in Cardano price, investors can expect a similar outlook to play out. 

Cardano whales accumulating

Cardano whales accumulating

Adding credence to the bullish outlook for Cardano price is the 52% spike in the active addresses interacting with the ADA blockchain over the last five days. 

The last time active addresses spiked roughly 120% was in July, which was immediately followed by a 24% upswing in Cardano price.

A spike in active addresses generally denotes that these investors are interested in ADA at the current price level and are likely to accumulate. Hence, the surge in these interactions over the last five days, from 76,000 to 116,000, indicates a potential inflow of capital.

Therefore, sidelined buyers need to be aware of an incoming rally for Cardano price.

Cardano active addresses

Cardano active addresses

Nevertheless, if the broader market bearish cues intensify, Cardano price could still resume its downtrend and tag the $0.320 support level. A breakdown of this barrier will create a lower low, skewing the odds in bears’ favor and invalidating the bullish thesis.

If this outlook comes to pass, ADA could slide lower due to the increased selling pressure and revisit the $0.288 foothold


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP