- A 34.48% surge in ADA’s price set the foundation for a test of the $0.4671 resistance.
- Metrics indicated mixed signals, with large transactions hinting at a bullish momentum.
Cardano’s [ADA] recent price action has taken the crypto market by storm. The asset has indicated significant bullish momentum in the past few days.
Cardano has surged by about 34.48% since the 6th of July, successfully breaking over the $0.4260 resistance level. This breakout has set the stage for a potential push towards the next significant resistance at $0.4671.
However, a 4.5% pullback saw ADA retesting $0.4260 on the 14th of July, which may now serve as a support level.
Source: TradingView
Cardano paints a mixed picture
AMBCrypto’s look at IntoTheBlock data indicated that 34% of addresses were in profit at press time, while a substantial 61% remained out of the money.
This imbalance could lead to selling pressure as holders sought to minimize losses. However, it also presented a potential buying opportunity for those anticipating a continued uptrend.
According to the data, the concentration of ADA among large holders stood at 28%, suggesting that whale behavior could significantly influence price movements.
To add on to the aforementioned, the high volume of large transactions, totaling $28.19 billion over the past week, indicated strong institutional interest in Cardano.
Source: IntoTheBlock
Also, Cardano’s net network growth remained steady at 0.13%, while the number of HODLers in the money was a bullish 10.94% at press time.
Large transactions also leant bullish at 0.61%, hinting at potential upward pressure on ADA’s price.
Battle of bulls and bears
AMBCrypto further analyzed Coinglass’ data, which showed significant fluctuations over the past 24 hours. The data indicated several periods of strong bullish dominance, followed by bearish reversals.
As of this writing, the data indicated a spike in long positions. This suggested steady building momentum while the market awaited further direction.
Source: Coinglass
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As Cardano approaches the $0.4671 resistance level, investors should watch for continued momentum or signs of exhaustion.
The recent pullback to $0.4260 could either serve as a stage for further gains, or signal the start of a more significant retracement to the support levels below.
