Is Cardano Attempting Another Price Reversal? 3 Reasons Bulls Could Still Lose
Cardano shows bullish technical signals like divergence, but weak whale accumulation and negative spot flows suggest the potential reversal lacks strong conviction.Summary
Cardano's price is slightly up, forming a technical rebound pattern similar to one in December that preceded a 32% rally, evidenced by bullish divergence on the RSI.
However, this technical setup is not supported by major market participants. Unlike December when large holders (whales) were accumulating, they have been reducing their ADA holdings since mid-January. Furthermore, derivatives data shows open interest has dropped by over 50% since early January, indicating a lack of leverage participation necessary for strong rallies.
Compounding the issue, spot market flows have recently turned negative, showing ADA moving back onto exchanges for selling, suggesting short-term buyers are not committed. While a break above $0.28 could signal control and a potential move toward $0.35, the current lack of conviction from whales and derivatives traders makes this scenario unlikely unless spot buying strengthens.
(Source：BeInCrypto)