On Thursday, Cardano's price dropped over 5%, falling to $0.25 and giving back some of the gains from the previous day.
Long liquidations occur when bullish traders are caught in a downturn, forcing them to sell their positions to cover margin calls. When long liquidations significantly exceed short liquidations, asset prices typically face intense downward pressure as forced selling creates a cascading effect.
Despite the market's volatility, reports indicate that whales remain optimistic about the token's rise. According to Santiment, the number of whales holding over 10 million ADA tokens has reached 424, a four-month high. This represents a 5.2% increase over the past nine weeks, clearly indicating that whales have been accumulating the token during the price pullback.
Therefore, if the accumulation trend among whales continues to strengthen, they may attract the attention of retail investors, which in turn could alter ADA's current price trajectory.
Cardano Price Analysis
From the daily chart, Cardano's price has entered a sideways channel, trading within this range since early February.
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The altcoin broke out of this pattern on March 29, as market risk appetite declined due to geopolitical issues. However, Cardano has recently returned to this channel, indicating that bulls are attempting to regain control.
Although the Super Trend indicator still shows some persistent bearish sentiment (remaining red), the MACD line indicates slight bullish momentum and has experienced a bullish crossover while still remaining below the zero line.
Currently, the two trend lines of the channel mark the key resistance and support areas for the token. Therefore, if the price breaks below the lower trend line at $0.24, it may signal a deeper correction; whereas if the bulls successfully push the price above $0.30, it could trigger a new rally towards previous highs.