Cardano (ADA) has experienced a staggering rally, with its price surging 300% over the past five weeks. The altcoin recently broke through the $1 mark, hitting its highest level in nearly two years.
While this upward momentum has fueled investor optimism, it has also triggered profit-taking, with many viewing current levels as a selling opportunity.
Cardano investors eye profits
Small holders of ADA have been actively selling in recent weeks. Data shows that wallets holding 100 to 10,000 ADA have sold more than 72 million ADA, worth more than $92 million. This selling trend has continued for more than a month, highlighting the continued profit-taking of retail investors.
While the sales volume from small holders is substantial, its impact is not as significant as larger trades from whales.
Despite significant sell-offs by small holders of ADA, the market price has not dropped significantly. However, this sell-off activity may indicate a cautious attitude among investors, with some choosing to lock in profits rather than risking holding the altcoin through potential market volatility. Although the trend of Cardano investors taking profits is not enough to trigger a massive sell-off, if it continues, it may increase downward pressure.
Cardano Investor Holdings.
The overall macro momentum for Cardano is somewhat complex. The price DAA divergence indicator shows that while ADA's price is rising, market participation is not growing at the same pace. This divergence is often seen as a bearish signal, as it suggests that the rebound may be driven more by speculative buying than by organic interest and sustained inflows.
The lack of further participation, especially from large investors, has raised concerns about the sustainability of the current price level. If divergences continue, it may lead to a price correction, as large investors may be less willing to continue buying. Stagnation in market participation could result in weakened price momentum in the coming weeks.
Cardano Price DAA Divergence.
ADA Price Prediction: Maintaining Uptrend
This week, Cardano's price surged 25% to $1.29, bringing the altcoin to its highest level in nearly two years. This increase reflects the growing optimism among investors and traders.
As ADA approaches a key resistance level, the current momentum is very strong. Many are watching whether this rally can be sustained, especially near the psychological barrier of $1.30.
For Cardano to maintain its upward momentum, it needs to convert the resistance level at $1.30 into support. If it can successfully hold this level, the rebound may continue. However, if it cannot do so, it may lead to a pullback to the support level at $1.01, erasing recent gains and potentially signaling the end of bullish momentum.
Cardano Price Analysis.
If Cardano successfully holds the support level at $1.30, the next target may be $1.50. Breaking through this level would further enhance the bullish outlook, confirming the strength of the current rebound momentum. This scenario would invalidate bearish arguments and signal sustained growth, making $1.50 the next major resistance level.
