Two days ago, Cardano (ADA) seemed poised for a rally toward $0.40. However, the momentum faded as crypto whales pulled back. While ADA’s long-term potential remains strong, short-term indicators suggest a less optimistic outlook.Â
Whale Activity DeclinesÂ
On September 14, Cardano’s large transaction volume reached 16.25 billion ADA. By September 16, it increased to 19.50 billion, sparking speculation about hitting the 20 billion milestone. Large transaction volume often indicates the amount of crypto moved by institutional players or whales, with transactions worth $100,000 or more. Â
A spike in this metric usually means big players are buying. In Cardano’s case, however, the volume fell from 19.50 billion to 18.44 billion, showing a decrease in activity from major holders.Â
This decline could mean Cardano’s price won’t get the boost needed to recover recent losses. ADA’s price has already dropped from $0.36 over the weekend to $0.33. This decline has also affected the Market Value to Realized Value (MVRV) ratio, which measures unrealized profits or losses. Â
On Monday, Cardano’s one-day MVRV ratio was -39%, but today, it has fallen to -61.25%. This suggests that more holders are now in a tougher spot to see gains.Â
Bearish Signals IntensifyÂ
Cardano’s price analysis indicates growing bearish pressure. The Awesome Oscillator (AO), a momentum indicator, has moved into negative territory after being positive on September 15. A negative AO reading usually signals bearish momentum.Â
Additionally, ADA’s failure to break above the $0.34 resistance point reinforces the bearish trend. Given current conditions, a further decline toward $0.30 seems likely. However, if ADA’s daily close goes above $0.35 due to a surge in whale purchases, this bearish outlook could be invalidated, potentially pushing the price up by 15% to $0.40.Â
