Cardano Under Pressure: ADA Price Plunge as Whales Lose Interest?

• Market Challenges for Cardano (ADA)
• Difficulties for Bullish Traders
• Declining Interest in Cardano
• Will ADA Price Recover?
• Selling Pressure Continues

Market Challenges for Cardano (ADA)

In recent weeks, Cardano (ADA) has faced considerable difficulties, struggling to pace with the larger crypto market's recovery. The decrease in buying interest among major investors has led to increased turbulence and a surge in liquidations, forming a significant barrier to price recovery.

Difficulties for Bullish Traders

Contrary to expectations, bullish traders found themselves up against a serious hurdle with Cardano (ADA). Coinglass data reveals an alarming volume of ADA liquidation, surpassing $1.2 million. Notably, bullish traders were considerably affected, with close to $930,000 of their long positions liquidated, strengthening the resistance level at $0.55.

Declining Interest in Cardano

The inability of Cardano to align with the prevailing bullish trend in the marketplace, coupled with the impressive performance of other burgeoning altcoins, has led to a decrease in interest from key investors. Since December, there's been a drastic decrease, with the measure falling from a weekly high of $153 billion on December 11 to a mere $15.8 billion by January 8, indicating a 90% reduction. This trend points to a lessening possibility of significant price shifts for Cardano in the near future.

Will ADA Price Recover?

The recovery of Cardano was obstructed by bears near the 50-day Exponential Moving Average (EMA) at $0.56, hence, escalating the selling pressure. The latest data shows that ADA's price is at $0.5135, indicating a downward trend of over 2% from the previous day's price.

Selling Pressure Continues

At present, the bears hold the upper hand, with intense selling pressure apparent above the moving averages. With the Relative Strength Index (RSI) trading below the midline, it seems the sellers have the advantage. Although the bulls aim to trigger a rally from $0.56, they might encounter strong selling resistance at the 50-day EMA.

Edited by Jonathan Stoker