Cardano Tests Crucial Support as It Sees Renewed Whale Interest With $13B Daily Transactions. Is It a Time for Recovery?

The crypto market has been on a bear ride in recent weeks, with prices across the board recording losses and huge drops. One project that is starting to show signs of life is Cardano (ADA), as large transactions on its network have soared to an average of $13 billion per day over the last seven days. This surge in whale activity nearly competes with Bitcoin, the world's largest cryptocurrency by market cap.

Despite ADA's 11% drop over the last 7 days and a massive 30% drop in the last 30 days, the renewed interest from whales – investors holding large amounts of the digital asset – is a promising sign for the Cardano ecosystem. At the time of writing, ADA is trading at $0.4546, up 0.90% in the last 24 hours, with a market cap of $16.2 billion, ranking it as the 10th largest crypto asset.

The spike in large transactions on the Cardano network suggests that institutional investors and high-net-worth individuals are accumulating ADA, potentially in anticipation of future price appreciation or to leverage the blockchain's capabilities for various use cases, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).

ADA Technical Analysis

On the weekly chart, ADA is currently in a bearish momentum. Since March 14th, when it faced its second rejection, creating a recent high of $0.81, ADA has been trading bearish, with most weekly candles closing bearish. Only two out of the last eight weekly candles have closed bullish, indicating slight retracements and corrections. Is a reversal looming or a breakdown at the current support level?

ADAUSD Weekly Chart: TradingView

On the daily timeframe, ADA is now trading at a support zone around $0.4450 zone, marking the second retest of this level in April, where it was initially rejected. With a Relative Strength Index (RSI) reading of 35, which is close to the extremely oversold region, there is a potential confluence that bullish momentum could kick in, indicating more room for buying pressure and a potential test of resistance levels if bulls take charge.

ADAUSD Daily Chart : TradingView

If a reversal kicks in and the bullish trend occurs, a reversal to the upside is possible, with the price correcting upwards to fill the fair value gap slightly below the resistance of the ascending trendline, which is also the next target if bulls gain control, after a successful test of the most recent lower high of 0.5227. However, if the bears maintain their grip on the market and break down past the support level, they could push the market lower, retesting the $0.4051 low.

On the 4-hour chart, the price is clearly and currently trading at the support zone, and market participants are awaiting the next move—whether it will be a rejection and recovery from the bearish run or a breakdown for bearish continuation. All eyes are on the current support zone.

Will ADA be able to capitalize on whales' renewed interest? With its expanding ecosystem and potential for growth, ADA could be poised for a comeback, provided the bulls can regain control and hold prices above this current support level and propel the price upwards.