- Despite the recovery, Cardano faces bearish pressure after recent price pullbacks.
- Cardano (ADA) struggles below $0.80, with bearish pressure mounting in the market.
- Whales offload 330 million ADA, adding a bearish sentiment to Cardano’s outlook.
Cardano (ADA) demonstrates a balanced approach and concern as it tries to maneuver around the markets. After experiencing a steep decline at the beginning of the week, ADA is showing signs of recovery, and it has risen by 8.39% over the last day. However, short-term price action suggests a bearish scenario for the broader market after a short-term pullback.
Bearish Trends Persist
On the daily chart, Cardano has a bearish descending trend. This price movement created a bearish engulfing candle, which means that the bears dominated the bulls and ensured increased selling pressure.
With ADA currently trading at around the $0.75 area, struggling to break above $0.80, the downward trend witnessed over the past few days has aggravated the bearish sentiment. The daily Relative Strength Index (RSI) is approaching the oversold level, which suggests that the selling pressure may have reached its climax.
Accompanying the bearish outlook, Cardano is located below its S1 support level of $0.79553. Such a break heightens the probability of a further decline, with the next important support level at the S2 level of about $0.65104. However, the oversold RSI could mean that a reversal could take place if the broader market trading range becomes stable and, therefore, indicates a short-term trading range toward $0.98.
Related: Hoskinson Unveils Cardano’s 2025: DeFi, Midnight, and More
Whale Activity Impact
Analyst Ali Martinez has also highlighted Cardano whales, whose behaviors could put more pressure on the price. Santiment data reveals that whales have unloaded 330 million ADA worth a total of $280 million without buying back the tokens.
Cardano’s future course of action depends on whether the market becomes stable. However, if buying pressure reappears and ADA is able to reclaim lost support levels, the price may head towards the $0.98 level. However, if $0.80 cannot be achieved, the token could go down and pull $0.65 before a rebound occurs. Traders will now watch how ADA will react to testing the critical levels as it holds a strong position among different cryptocurrencies.
