- Whales dump 330 million ADA tokens: Despite this massive sell-off, ADA defied expectations by surging over 62% in two days, climbing above the crucial $0.71 support level and trading near $0.77.
- Strong technical support at current levels: ADA is supported by the 200-day EMA and horizontal support, with analysts predicting a 50% rally to $1.12 if momentum holds. However, resistance near $0.83 could slow further gains.
- Traders show optimism with large long positions: Bulls have $21.66 million in long positions around $0.738 and $0.703, while short-sellers are over-leveraged at $0.781. The ongoing tug-of-war suggests potential for a continued upward trend.
According to the post, whales offloaded 330 million ADA tokens during the dip. This sell-off should have created intense selling pressure, yet surprisingly, ADA held steady. In fact, CoinMarketCap data reveals that ADA pulled off a stunning 62% price reversal in just two days. The token broke above a crucial support level at $0.71 and is now trading near $0.77, up over 7.10% in the past 24 hours.
Interestingly, ADA’s trading volume has plummeted by 55%, suggesting that fewer traders and investors are participating compared to the day before. The lower volume may signal temporary caution in the market.
Technical Analysis: ADA Gaining Momentum
ADA’s current price sits on strong horizontal support, which experts believe could act as a pivot point. This level is reinforced by the 200-day EMA on the daily chart, typically an indicator of a bullish trend when prices remain above it.
If ADA holds its support near $0.77, analysts suggest a 50% price surge might be in play, targeting the $1.12 mark. However, ADA may encounter resistance at $0.83, a short-term level to watch for traders.
Traders Still Betting Big on ADA
Intraday traders are displaying high optimism, with significant long positions stacked up. According to Coinglass, the primary long liquidation zones are at $0.738 and $0.703, where bulls hold $21.66 million worth of positions. Meanwhile, the short-sellers are over-leveraged at $0.781, where they hold $7.25 million in bets.
This imbalance indicates a tense tug-of-war between bullish and bearish traders. Should bulls maintain control, ADA could gain more traction and potentially achieve new highs.
Final Thoughts
With whales seemingly out of the picture for now and technical indicators favoring upward momentum, ADA’s price action is painting a hopeful scenario for the coming days. Strong support levels, combined with long positions and steady bullish sentiment, hint at the possibility of continued recovery and future gains. Still, as with all markets, key resistance points could test ADA’s rally. Traders will be keeping a close eye on whether the current momentum can be sustained.
