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Is Cardano on the Verge of a Further Dump?

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ADA RSI


A new drop or a major rally: what comes next for ADA?

Cardano’s ADA has been struggling lately, with its price nosediving to a five-year low at the start of February.

While bulls might be eager to see a decisive revival in the short term, the recent actions of the large investors suggest another move south could be on the way.

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The Whales Know Something We Don’t?

The renowned analyst Ali Martinez revealed that Cardano whales have dumped approximately 190 million ADA in the past week. The USD equivalent of that stash is roughly $50 million (calculated at ongoing rates of $0.26 per coin).

Seven days ago, the total possessions of this cohort of investors were 13.57 billion ADA, whereas they currently hold around 13.38 billion tokens. The figure represents approximately 36.3% of the asset’s circulating supply.

There is a general assumption in the crypto space that whales are experienced investors who may have inside information about important upcoming events that could influence their buying or selling decisions. That said, their recent actions could spread panic across the community and prompt smaller players to cash out as well.

The purely economic impact is also worth noting. Large sell-offs increase the amount of ADA on the open market, which, combined with non-increasing demand, should lead to a price pullback.

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ADA’s Relative Strength Index (RSI) is another bearish factor investors should be wary of. The indicator shows whether the asset is overbought or oversold based on recent price momentum. It ranges from 0 to 100 and helps traders identify when a trend may be about to end.

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Readings above 70 signal that ADA has entered overbought territory and could be on the verge of a correction, while ratios below 30 favor a bullish scenario. As of this writing, the RSI stands at around 74.

ADA RSIADA RSI
ADA RSI, Source: RSI Hunter

History to Repeat Itself?

ADA is among the cryptocurrencies with vast communities, which consist of proponents and bullish analysts. Just a few days ago, X user Aman noted that the asset’s price has dropped to the demand zone of around $0.26, reminding that in the past this area has sparked major reversals.

Mentor shared a similar viewpoint, arguing that the last time ADA reached current levels, it later rose to nearly $1.40 in less than a month. “History is going to repeat itself soon,” they projected.

Over the last few months, ADA’s exchange netflows have been predominantly negative, which reinforces the optimistic predictions. The trend reflects investors moving coins from centralized platforms to self-custody, reducing the likelihood of short-term selling.

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ADA Exchange NetflowADA Exchange Netflow
ADA Exchange Netflow, Source: CoinGlass
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Crypto World

Here’s Why Bitcoin Analysts Say BTC Price Will Bottom at $40K

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Here’s Why Bitcoin Analysts Say BTC Price Will Bottom at $40K

Bitcoin (BTC) buyers made a tepid comeback on Monday, pushing BTC price to its intraday high of $67,860. Analysts said that Bitcoin remains in a bear market, with several metrics pointing to a potential bottom below $50,000.

Key takeaways:

  • Bitcoin price turns $70,000 into resistance, clearing the path for a deeper correction.

  • Bitcoin’s short-term holder realized price bands moved lower, with a potential bottom around $46,000.

  • Historical retracement levels and a bear flag breakdown point to $39,000–$41,000 as the final low for BTC price this cycle.

Bitcoin’s “path of least resistance” is downward

Data from TradingView captured ongoing BTC price gains, up 1.5% on the day to trade at $67,750, as $69,000-$70,000 became new resistance.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Analyzing Bitcoin’s price action on lower time frames, Telegram trading resource Technical Crypto Analyst said losing the $68,000-$69,000 support “confirms short-term bearish momentum,” adding:

“Unless price quickly reclaims $69K–$70K, the path of least resistance remains downward toward the $65K demand zone.”

Related: Worst six months since 2018? Five things to know in Bitcoin this week

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“Great bounce upwards, but nothing confirmed as of yet on Bitcoin,” MN Capital founder Michael van de Poppe said in a Monday post on X.

It “all depends on macroeconomic events; however, I’d rather see a breakout above $71K for confirmation,” he added.

“On the other hand, a classic little sweep to $65K just before the push upwards would signal that we’re going to get that momentum.”

BTC/USD four-hour chart. Source: X/Michael van de Poppe

Analyst Kyle Chassé said that with the Fear and Greed index still in the “extreme fear zone” and the order books showing more shorts than longs, the market leans “towards more downside.”

Crypto fear and greed indeed. Source: X/Kyle Chassé

Where will the Bitcoin price bottom?

Bitcoin’s 46% drawdown from its $126,000 all-time high has seen the cost basis of short-term holders (STH) — the average price of entities who have held BTC for less than 155 days — drop from $113,500 to $83,200.

“​​This is a sign that the pricing for a potential bottom has also moved lower,” said CEO and founder at Alphractal Joao Wedson in an X post on Monday.

Similarly, the lower line of the STH realized pricing bands (blue line) has also moved “even lower, which could confirm that Bitcoin may form a bottom around $50K or slightly below,” Wedson added.

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The chart below shows that Bitcoin bottomed out just below the lower band of the STH realized price during the 2022 bear market. 

Bitcoin STH realized price bands. Source: Alphractal

Analyst Willy Woo said that the bear market bottom for Bitcoin could be between its realized price, currently at $54,000, and the Cumulative Value-Days Destroyed (CVDD), now at $45,500.

“Old school onchain models suggest a BTC bottom between $46K-54K. ”

Bitcoin pricing models. Source: X/Willy Woo

The CVDD measures the cumulative value of “Coin Days Destroyed” (long-term holders selling) relative to the market’s age, creating a rising “floor” price during bear markets. 

Crypto analyst Crypto Jelle said Bitcoin’s bear market lows have historically formed between the 0.618 and the 0.786 retracement levels, which are at $57,600 and $39,000, respectively.

BTC/USD weekly chart. Source: X/Jelle

As Cointelegraph reported, the current “last stages” of the bear market are producing predictions of as low as $41,000, based on a bear flag breakdown.