Cardano’s (ADA) price had been tethering at the edge of forming lower lows, but the altcoin bounced back.

The question is whether it can sustain this recovery since one of the most important groups of investors is showing bearish signs.

Cardano Whales Pull Back

Cardano’s price could bear the brunt of declining bullishness as the whales continue to pull away from participating in the network. The total volume generated through transactions worth more than $100,000 has noted a considerable drawdown, albeit steadily.

This volume has dropped from $17.2 billion to $8.4 billion in the span of a quarter, with the volume noting further decline. Whales hold substantial influence over the price, and their activeness tends to help accelerate recoveries. However, in the case of Cardano, this responsibility will likely go to the retail investors who are patiently HODLing over-selling.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

This can be noted upon observing the active addresses by profitability, which shows that less than 8.3% of all participating investors are in profit. This is also a good sign since these investors tend only to conduct transactions on the network to sell for profit.

If their presence amounts to more than 25% of all active addresses, the selling pressure is noted to be intense. This means ADA has an advantage in the form of support from its investors.

ADA Price Prediction: Breaching A Resistance

Cardano’s price bounced back from $0.34 despite nearly falling below the support line. Currently, ADA is trading at $0.36, close to breaching the resistance at $0.37. This level has been tested as support multiple times in the past.

Thus, breaching it would further Cardano’s effort toward recovery. However, the whales’ lack of bullishness could keep it under $0.40.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

On the other hand, a failed breach would mean another potential drop below $0.34, potentially sending ADA to $0.32 or lower, invalidating the bullish thesis.

Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...