Cardano price shows bullish signs but faces whale retreat and declining momentum. Due to reduced network activity, ADA price struggles around $1.

Cardano (ADA) price has soared 10% in the past week, showing signs of a bullish trend that may emerge in 2025. This recovery follows a rise at the end of 2024, as the broader cryptocurrency market stabilizes.

However, reaching the $1 mark may face obstacles, as the decrease in whale activity raises concerns. Bitcoin's rise above $97,000 has boosted market sentiment and aided recovery. Cardano's future momentum depends on increased investor confidence and reduced sell-off pressure from major holders.

Cardano price loses momentum

Cardano's price has risen above $0.90 after an 8.69% increase in the last 24 hours. ADA price is currently $0.957, with a daily increase of 5%. This growth aligns with the overall upward trend in the cryptocurrency market over the past week.

Cardano (ADA) has risen 10% over the past week, solidifying its position as the ninth-largest cryptocurrency by market capitalization. Ahead of the anticipated bull market in 2025, ADA is attracting investors' attention.

ADA holders are fleeing due to weakening momentum

ADA price has retreated from a recent high of $1.3264, as the number of daily active addresses has dropped to levels seen before the surge on November 3. Although the price has only fallen 30%, investor participation in the network has sharply declined, highlighting a lack of sustained interest in the asset.

Network growth metrics had soared with the rebound but have now significantly slowed. This indicates weakening momentum and declining confidence among ADA holders. The decrease in daily active addresses suggests that despite the relatively mild pullback in the asset's price, participation has waned.

With momentum weakening, whales are selling ADA

On December 11, the whale group holding 10 million to 100 million ADA held 12.15 billion ADA. Meanwhile, the whale group holding 1 million to 10 million ADA held 5.64 billion ADA.



The decline in holdings by important ADA stakeholders indicates a bearish momentum for Cardano, as whale sell-offs typically precede price weakening.

Cardano price analysis and targets

Cardano (ADA) price is gaining upward momentum after consolidating around $0.80. Despite the price stagnating for an extended period, the cryptocurrency has risen to $0.96, showing resilience.

On the four-hour chart, resistance and support zones are clearly visible, providing important insights into potential price movements. The immediate resistance level is at $1.00, which has historically been a psychological barrier. A breakthrough at this level could pave the way for testing $1.30. On the downside, the $0.80 area is a strong support, while $0.70 and $0.50 are secondary retracement levels.

The Relative Strength Index (RSI) has entered the overbought zone, currently hovering around 67. This indicates that buying pressure is increasing, although the market may soon face a brief correction.

Cardano price recovery outlook is positive, but reduced whale activity presents challenges. Continued investor confidence and new market participation are crucial for ADA to break through the $1 resistance level.

Highlights

Reduced whale activity signals bearish momentum for Cardano (ADA).

Cardano price faces resistance at $1, which is both a psychological and technical barrier.

Investor confidence is crucial for maintaining bullish momentum for ADA.