One Reversal Hope Explains Why Big Money Bought the 20% Cardano (ADA) Price Dip
Despite a 20% price drop, large Cardano holders accumulated ADA while two bullish metrics suggested a potential reversal.Summary
Cardano's (ADA) price fell over 20% between January 14 and January 25, but analysis suggests this dip attracted 'big money' accumulation while retail investors sold off. Large ADA holders (whales) increased their balances near the local bottom, accumulating over $10 million worth of ADA. This accumulation coincided with two bullish technical signals: a bullish divergence on the Relative Strength Index (RSI), where the price made a lower low but RSI made a higher low, indicating weakening selling pressure; and a rising Money Flow Index (MFI) despite the falling price, signaling active dip buying. These factors weaken the bearish case, suggesting a potential reversal, though the next move depends on ADA breaking key resistance levels like $0.390 and the 20-day EMA.
(Source：BeInCrypto)