ADA’s Whale Sell Activity and Market Dynamics

• ADA’s whale sell activity increased as Google searches for “Is Cardano a good investment?” surge by 90%.
• The most important level for Cardano as of recent price action is $0.64 and could determine the next ADA move.

The offloading of Cardano (ADA) by whale accounts has seen a collective sale of over 170 million tokens. The decline in the number of ADA held by large holders confirmed a sharp fall in wallet balances from just under 3.26 billion ADA to nearly 2.98 billion ADA.

This mass sale coincided with a notable drop in ADA’s price, which decreased from around $0.83 to $0.65 during the same period. This clearly indicated that as holdings reduced over time, the price also fell, suggesting a bearish sentiment among major holders, possibly anticipating a further drop in price.

Conversely, the sell-off could present a buying opportunity for new or existing investors looking to capitalize on the lower price, potentially stabilizing the market. This coincided with an increase in Google search trends for various assets, with Cardano’s interest surging by 90% as reported by TapTools on X. Other assets like Polkadot (DOT) and Luna Classic (LUNC) saw their search volumes double with increases of 110%, indicating heightened market attention possibly due to recent developments.

Similarly, interest in silver showed substantial growth at 100%, as Intel’s “Breakout” confirmed the sudden spike in searches.

How Will ADA React?

Analyzing the price action of ADA, based on Fibonacci retracement levels from the peak and trough of its last bull cycle, ADA was trading around a pivotal support level at $0.65. This comes as the broader altcoin market faces an extended correction since mid-January.

A sustained hold above $0.65 could set the stage for an upward move towards $1.00, and potentially to $3.00, aligning with long-term resistance. A more bullish scenario could see ADA reaching $7.50 and beyond. Conversely, a drop below $0.65 could lead to a descent towards the $0.30 area, where ADA previously consolidated for an extended period, confirming a shift towards bearish momentum.

The Stochastic RSI indicates that current market conditions might be nearing oversold territory, hinting at an upcoming recovery if bullish momentum accumulates. In essence, ADA’s immediate trajectory hinges on its ability to sustain above $0.65. Breaching $1.00 could confirm a bullish scenario towards $3.00, while a drop below $0.65 would likely lead to retesting foundational support levels.