Last week, Cardano (ADA) price seemed to be on track to break out of a bullish descending wedge.
However, changing market conditions prevented ADA from recording gains, delaying its potential breakout and possibly even invalidating it.
Cardano Investors May Be Disappointed
Cardano price has completely ignored investor sentiment over the past couple of weeks. Bullish sentiment towards Cardano (ADA) is quickly fading as the cryptocurrency continues to succumb to bearish signals from the broader market.
ADA’s failure to break out during key market rallies has led to a significant decline in investor confidence. As these failed breakouts accumulate, optimism is waning, potentially setting the stage for further declines in ADA’s price. This shift in investor sentiment could exacerbate existing bearish trends.
Read more: How to Buy Cardano (ADA) and Everything You Need to Know
Adding to the concern is a noticeable decline in activity among large wallet holders, or crypto whales. Over the past month, transaction volume among these large holders has fallen by 32%, dropping from $7.81 billion to $5.26 million. This decline in crypto whale activity reflects a decline in interest and could further negatively impact the price of ADA.
The decline in interest from crypto whales suggests a potential lack of confidence in ADA’s short-term prospects. As large investors retreat, their reduced activity could contribute to a deeper price decline. This trend suggests that ADA may struggle to regain its upward momentum without the support of these influential market participants.
ADA Price Forecast: No Breakout, No Rally
Cardano price at $0.35 could face challenges and may not even be able to break out of the descending wedge. This model suggests a 47% rally is possible after a breakout, putting the target at $0.53.
However, the decline in optimism could affect ADA’s retention below the upper trendline of the pattern. This leaves Cardano’s price vulnerable to a fall to $0.31, which would deepen the drawdown.
Read More: Cardano (ADA) Price Prediction 2024/2025/2030
However, if ADA manages to bounce off $0.31 and break out of the pattern, it has a chance to recover. To do this, $0.40 will need to be flipped into support, which will negate the bearish thesis.
