ADA’s price fell over 10% in the past week after a market structure shift broke a key trendline.
Despite the dip, whale accumulation at a demand zone has triggered a 3% recovery in 24 hours.
Cardano [ADA] has struggled over the past week. The altcoin value fell by over 10%, making it one of the largest weekly losers in the market. This fall followed a noticeable shift in market structure.
ADA broke below an uptrend trendline support, which it had been holding since the 7th of April. The break signaled weakness and altered trader sentiment from bullish to bearish.
This change in market structure invited selling pressure as the bears dominated.
However, the correction brought ADA to a key zone of demand. The zone previously had served as support and was met with strong buying interest.
Source: TradingView
Whale activity suggests accumulation
AMBCrypto analysis of CryptoQuant’s on-chain data indicated that whales had started to accumulate large buy orders as ADA approached the demand level.
This is a spike in whale activity as the prices test this key demand zone suggests strong investor interest at current prices. It also shows a potential base forming for the reversal.
The demand zone is currently the center stage. The buyers appear to be taking over. ADA has recovered by about 3% over the past 24 hours at press time. This could be an early sign of bullish pressure building.
Whales accumulating in this region generally means medium-term bullishness. But if the demand continues to go up, ADA might attempt a comeback.
However, the long-term overall trend can still remain bullish, especially if Bitcoin and the rest of the market bullishness sustains.
Source: CryptoQuant
Will ADA recover or drop further?
The demand zone is holding for the time being, but with weak support. Failure by bulls to seize the momentum available may see another wave of selling push ADA lower.
On the other hand, sustained buying — particularly by large wallets — may cause an ultimate bounce.
Traders and investors alike will be awaiting a higher low and recapture of the broken trendline. That would confirm a potential reversal. Until then, ADA is in a vulnerable zone where market sentiment can go either way.
With whale orders and recent highs showing early strength, the next couple of days are crucial. If the demand zone holds, ADA could turn from one of the week’s biggest losers and initiate a short-term recovery.
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