The crypto market entered this week with a massive surge in volatility surrounding the uncertainty around U.S. tariff policy. The pioneer cryptocurrency, Bitcoin, made a flash drop to $91,000 on Monday before reverting to $100k and accelerating selling pressure in the altcoin market. Thus, the Cardano price faces a risk of potential breakdown amid whale selling.
Key Highlights:
- A bearish breakdown from the support trendline of the pennant pattern accelerates the selling pressure.
- A sharp decline in Cardano whale’s holding with the absence of buybacks suggests the market is still navigating through a bearish phase.
- The $0.76 support backed by a 200-day exponential moving average indicates a crucial accumulation zone for buyers.
Crypto Whales Dump Over 330 Million ADA
In a recent tweet, renowned crypto analyst Ali Martinez highlighted that crypto whales have offloaded over 330 million Cardano ADA and have not re-entered the market yet. This mass exodus of large holders reflects a shift in sentiment, potentially signaling caution among institutional investors or major stakeholders.
While crypto whales often show interest in the discounted value of top assets, including Cardano, the current selling hints at their expectation for prolonged correction.
Cardano Price Eyes Recovery Amid Cup and Handle Pattern
Over the past two months, the Cardano price observed a major correction from $1.32 to $0.76, registering a loss of 42%. This pullback, in the weekly time frame chart, hints at the formation of a well-known reversal pattern called cup and handle.
The chart pattern is characterized by a long-accumulation trend projected in a U-shaped recovery, followed by a temporary pullback. The ADA price is currently seeking support at $0.76 and 200-day EMA, a potential bottom for ongoing correction.
The long-tail rejection candle on this floor accentuates the intact demand pressure and potential for a bullish reversal. Amid the current uncertainty, the coin price could hover above $0.76 for the coming week before a recovery attempt to the $1.24 neckline.
A potential breakdown past this resistance will kickstart a major uptrend for Cardano.
Conversely, if the whale selling intensifies and the price breaks below $0.76 support, the bullish thesis could get invalidated and drive an extended correction below $0.6.
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