Cardano Price Rises Amid Mixed Investor Sentiment
Cardano (ADA) price climbed nearly 2% on Friday. This follows a 3% gain from Thursday. On the 4-hour chart, ADA is rebounding inside a descending triangle pattern. It may soon break out. However, retail support for ADA is weak. Large investors, called whales, are divided on Cardano’s future.
Whales Show Mixed Signals
- Whales holding over 1 billion ADA increased their supply share from 4.10% to 4.33% this month.
- This buying often hints at a possible price rise.
- But whales holding 100 million to 1 billion ADA sold 56% of their holdings this month.
- This group controls 10.94% of the total ADA supply.
Data from Santiment shows contrasting moves by different whale groups.
The derivatives market also shows caution. ADA futures Open Interest (OI) rose slightly to $660.90 million on Friday. It stayed under $700 million after falling from $1.51 billion on October 10. This flat OI reflects traders’ risk aversion and a wait-and-see attitude, according to CoinGlass data.
Cardano Eyes Breakout from Triangle Pattern
Cardano bounced off a support line that forms a descending triangle on the 4-hour chart. ADA faces resistance at the 50-period Exponential Moving Average (EMA) near $0.6554.
If ADA breaks above this EMA, it could test the overhead trendline by the Pivot Point at $0.6604. Closing above that line could confirm a breakout. This may push the price towards the R1 Pivot Point at $0.7284.
Momentum indicators support this view:
- The MACD is above its signal line and rising, showing growing bullish momentum.
- The RSI is at 53 and climbing, indicating increased buying pressure.
Still, the descending triangle often leads to a price drop. If ADA falls below Wednesday’s low at $0.6061, support may appear at $0.5847 and $0.5167, the S1 and S2 Pivot Points.
