Cardano (ADA): what's after 25% weekly growth?
2024-12-03

While ADA's upward momentum has sparked optimism among investors, it has also led to profit-taking, with many viewing the current levels as an opportunity to sell.

Smaller holders of ADA have been actively selling in recent weeks. Data indicates that wallets holding between 100 and 10,000 ADA have offloaded more than 72 million ADA worth over $92 million. This selling trend has persisted for over a month, highlighting ongoing profit-taking among retail investors.

Although the volume of sales by smaller holders is significant, it is not as impactful as the larger transactions made by whales.

On the chart, ADA approaches crucial resistance levels. Many are watching whether this rally can be sustained, especially with the psychological $1.30 threshold in play.

For Cardano to maintain its upward trajectory, it needs to flip the $1.30 resistance into support. If it can successfully hold above this level, the rally may continue. However, a failure to do so could lead to a pullback to the $1.01 support, erasing recent gains and potentially signaling the end of the bullish momentum.

If Cardano manages to hold $1.30 as support, the next target could be $1.50. A move above this level would further strengthen the bullish outlook, confirming that the current rally has legs. Such a scenario would invalidate the bearish thesis and signal continued growth, making $1.50 the next major resistance level.