According to CoinMarketCap, Cardano [ADA] was showing signs of recovery as of this writing, having climbed by 2% during the course of a 24-hour trading period. This comes following April’s severe cryptocurrency losses, which saw losses on the charts exceeding 23 percent.
The previously indicated decline in the market reduced ADA’s overall profit margin from 73% at the start of the month to 51% by its conclusion.
Coming back?
On the other hand, if well-known on-chain analyst Ali Martinez is to be believed, the corrective phase may not last long. Martinez saw a buy signal on the TD Sequential indicator on the daily chart of ADA, indicating a possible relief rally over the following one to four days).
Over the past two to three days, the Relative Strength Index (RSI) has risen steadily, indicating a reduction in selling pressure. Nevertheless, the general mood remained negative, and a sustained rally would only be justified if the RSI crossed above 40. A climb over neutral-to-bullish would bolster bullish attitudes.
The increase in On Balance Volume since the start of May also demonstrated the buying push. Its price action at the time of publication paralleled that of ADA, increasing expectations for a long-term upswing.
Evaluating whales’ reaction
The price decline of Cardano attracted the interest of whale investors. Transactions over $100,000 surged to their highest levels since November 2023 on April 30.
Upon examining various whale cohorts, some fascinating findings were discovered. The ADA’s holdings of smaller whales, which range from 1,000 to 1 million, have declined, indicating that they may have been selling off.
Conversely, larger whales were building up as the number of addresses containing one million to one hundred million coins climbed. As a result, it was clear that substantial money was shifting from smaller to larger whales.
May 2024, Cryptoniteuae
