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Highlights
- Cardano price could be poised for a recovery after bullish activity surged to the highest level in more than four months.
- Despite the bullish outlook, whales have hesitated to buy ADA, with the transaction count falling to multi-week lows.
- However, the strong bullish outlook, positive momentum and other catalysts hint at a possible price recovery.
Cardano whales are not reaccumulating ADA following a massive selloff earlier this month after the price hit a multi-week peak of $1.12. This hesitance suggests that large addresses anticipate the price to drop further. With whales refusing to buy the dip, is now still the right time to buy Cardano. 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.
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 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.
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.
Frequently Asked Questions (FAQs)
1. Is now the right time to buy Cardano amid the price dip?
2. Are whales buying Cardano?
3. Can ADA price recover above $1?
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