Cardano, the cryptocurrency that experienced a tumultuous April with significant losses, is now showing signs of a potential rebound. Despite a challenging month where ADA’s price plunged by over 23%, recent data indicates a shift in sentiment.
Analysis from Santiment reveals that the percentage of ADA’s total supply in profit decreased from 73% to 51% throughout April.
However, renowned on-chain analyst Ali Martinez suggests that the corrective phase might be coming to an end. Martinez identified a buy signal on the TD Sequential indicator, hinting at a possible relief rally in the next few days.
Further examination of key technical indicators supports this outlook. The Relative Strength Index (RSI) has been steadily rising, indicating a decrease in selling pressure.
However, for a sustained rally, the RSI needs to surpass 40 and ideally breach the neutral-50 mark, strengthening bullish sentiments.
Moreover, the On Balance Volume has been rising alongside ADA’s price, suggesting growing buying pressure and raising hopes for a sustained uptrend.
Interestingly, whale investors have been actively responding to Cardano’s price movements. Transactions exceeding $100k spiked to their highest levels since November 2023 on April 30th. Analysis of whale cohorts revealed a divergence in behavior. Smaller whales, holding between 1,000 to 1 million ADA, have been offloading their holdings, while larger whales, with holdings ranging from 1 million to 100 million ADA, have been accumulating.
This shift indicates a redistribution of capital from smaller to larger whales, signaling confidence in Cardano’s future prospects among institutional investors.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.