Cardano price movement over the last few weeks has seen ADA breaking above the $0.38 level on Jan 21 and consolidating near the $0.39 level. ADA remained one of the most resilient cryptocurrencies during the 2022 bear markets, and now the bulls have taken control.
The recent break above $0.38 has been welcomed by long-term ADA holders, as many of them seem to be taking advantage of these gains and selling or redistributing their holdings.
This positive price movement seems to have encouraged large holders or ‘whales’ to start selling or redistributing their ADA tokens. According to on-chain analytics firm Santiment, roughly 31 addresses holding 100,000 to 1 million ADA tokens have sold or redistributed their holdings since the break above $0.38. The total value of these transactions is estimated at around $100 million.
These whales are likely taking advantage of the recent bullish market to maximize their profits or diversify their holdings. While it remains unclear whether these tokens were sold on exchanges or redistributed among other wallets, this could be a sign that traders are becoming more confident in the long-term potential of Cardano and its native token, ADA.
Cardano Recent price analysis
The recent Cardano price analysis indicates ADA is trading inside a bullish pennant pattern after making a successful breakout above the $0.3 level earlier in January 2023. The price of ADA is trading well above the 21-day exponential moving average (EMA) and is currently challenging the resistance level at $0.39.
The Bollinger bands have started to diverge, indicating a decrease in volatility and that the market may be ready for further downside. The upper band is currently providing resistance at $0.39, while the lower band is providing support at $0.38.
The overall sentiment around ADA remains positive as long-term holders continue to take advantage of the current market conditions. If ADA can break above the $0.4 resistance, it could open up a new wave of buying pressure that could push it to higher levels.
On the other hand, if ADA fails to break above $0.4 and pullbacks below the 21-day EMA, this could signal a potential bearish correction in the near future.
Looking at the analysis of popular momentum oscillators, the RSI and Stochastic RSI signal an overbought market. This indicates a potential retracement in the near future. However, this could be offset by strong buying pressure should ADA break above the $0.4 resistance level.
The MACD indicator is trending above the red signal line at the moment, indicating that the buying pressure is increasing. A bullish pennant pattern is also forming, which implies further upside potential.
ADA/USD price analysis on the 4-hour chart shows the momentum has slowed after reaching a peak of $0.3987. ADA is currently trading near the support level at $0.385, and further declines could see it testing the next major support level at $0.37.:
On the upside, if ADA can break above the current resistance levels at $0.39, it could open up a new wave of buying pressure that could push it toward its all-time high of $0.45.
Overall, ADA holders seem to be taking advantage of the current bullish market as more and more whales sell or redistribute their tokens. If ADA can break above the $0.4 resistance level, this could signal a new bull run in the near future.
