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Cardano Recovered 4% Wednesday After Hitting Two-Year Low
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Whale activity is reported to be increasing
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Cryptocurrencies Continue Downtrend, No Bullish Momentum Confirmed
Cardano (ADA/USD) continues its rally after reaching a two-year low of $0.24. ADA, trading at $0.265 at the time of writing, had a 4% daily return. The profit of the day comes in the midst of increased whale activity.
According to WhaleStats data, ADA overtook the largest BSC whale on December 4th to enter the top 10 most purchased tokens. However, a portfolio worth $5.19 million is less than 1% of his total. Nevertheless, in the past 30 days, large investors have cut his ADA positions. This could explain why his ADA price dropped significantly to multi-year lows in December.
There are no clear indications of the recent surge in ADA.Formerly as a coin journal report, sentiment data showed ADA to be undervalued by the end of 2022. Investors may therefore be placing more weight on recovery once prices hit depressed levels. However, we remain cautious as the ADA continues its downward trend.
ADA recovers at bottom of descending channel
From a technical perspective, ADA is on a relief rally from the lower edge of the descending channel. At a two-year low, the RSI reaching oversold levels means investors dumped a lot of his ADA. The technical outlook on the daily chart still supports a bearish view on cryptocurrencies.
Will ADA recovery continue?
Cardano’s recovery is tied to broader crypto sentiment.many Cryptocurrency It recorded a rebound in relief on Wednesday but was still trading low. With the market remaining in a bear market, there is no certainty that the recovery will last.
If ADA sustains its recovery, we will have to watch how the bulls play out on the upper end of the descending channel. Conversely, ADA remains vulnerable to a bottom below $0.24.
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