Cardano whales rapidly sold ADA tokens earlier this month after the price moved past $1 in a rally fueled by President Trump’s announcement of a crypto reserve. This selling behavior is typical with large addresses where they tend to buy low and sell high. However, as whales hesitate to buy the dip, should retail traders accumulate? Let’s explore.
Whales Are Not Buying ADA After March 2 Selloff
Data from Santiment shows that on March 2, ADA whale activity surged by 480% in one day to a multi-week high of 2672 transactions. Whales rapidly accumulated after Cardano price surged by 72% within a few hours. However, after this massive sell-off, whales have gone silent, with no significant activity for more than two weeks. At press time, whale transaction count stood at only 289 transactions.
Cardano Whale Activity
The hesitance by large addresses signals that this cohort believes that a Cardano price bottom might not be in yet despite falling by 36% from its March peak. This outlook is bearish and could leave ADA stuck in consolidation until a bullish catalyst drives another rally.
However, as whales steer clear from Cardano at the current price of $0.71, retail traders should still consider buying the dip.
Reasons Why You Should Buy Cardano Now After Price Dip
Cardano has seen a lot of positive sentiment on social media after the SEC classified its use case in creating smart contracts for government services. In its recent report, Santiment revealed that ADA bullish activity is at its highest level in more than 4 months. Positive comments have surpassed 3,500, which is the highest level since the first week of November. If this continues, it could push Cardano price back above $1.
Cardano Sentiment
Cardano also has bullish catalysts in play that could aid a price recovery. Traders are still anticipating the launch of a spot ADA ETF. Moreover, Coinbase will launch ADA futures on March 31, which will bolster institutional interest and stir massive price gains.
Lastly, April has always boded well for crypto prices. Bitcoin and Ethereum have seen monthly returns of 12% and 22%, respectively during the month. If this happens again, it could push ADA price higher.
Given these reasons, it is likely that Cardano bulls may target $1, making the current price a good buying opportunity.
Cardano Technical Analysis
The Awesome Oscillator on the Cardano weekly price chart shows a bullish Cardano price prediction. This indicator is dropping, indicating that the bearish momentum is weakening.
If bears lose control and buyers step in to buy the dip pushing ADA price to the 50% Fibonacci level of $0.80, it could fuel an uptrend. Catalysts like Cardano futures on Coinbase and the resurgence of bullish sentiment could cause an upswing to the 261.8% Fib level of $3.01.
However, for Cardano price to confirm a recovery, the RSI needs to move back above $50. This metric has flattened at 48, suggesting that buying activity is weak.
ADA/USDT: 1-Week Chart
The surge in bullish sentiment to a four-month high as highlighted by Santiment, catalysts like the upcoming ADA futures listing on Coinbase, and a solid technical outlook indicate that traders should consider buying ADA despite the hesitance by whales.
The post Whales That Sold ADA For Huge Profits on March 2 Are Not Buying Cardano Price Here, Should You? appeared first on CoinGape.
