The Cardano price faced a massive pullback in the first few days of the month due to external factors. The token remained under tremendous pressure with the key support levels around $0.7 and as a result, it rebounded without attracting deeper correction. The price has found some stability since the last trading day, which helped the token to begin the day’s trade on a bullish note. Despite the rise, the ADA price continues to remain primed for more downside action ahead. Here’s Why.
After the recent pullback, the uncertainties over the token escalated as the price has been constantly failing to reclaim $1 since the start of the year. As a result, the whales exposure to the token has been cut to a large extent. The data from intotheblock shows the netflow of large ADA holders, holding more than 0.1% of the circulating supply, has plummeted by 90% in the past seven days.
The recent data suggests the ADA price is experiencing extreme volatility, with a decline from $0.977 to $0.75 over the past month. Despite the pullback, technical indicators suggest mixed signals. This had divided the investors into two; some believe these declines are a buying opportunity, while others predict a deeper correction is yet to come. Currently, the investors have found a good buying opportunity, which has elevated the levels by some margin.
So what’s next? Will the ADA price rise above $1 this month?
The recent pullback dragged the levels below the ascending trend line, which transformed it into a descending parallel channel. The price reached the lower support and has triggered a rebound, while a validation could begin a fresh upswing. The CMF is used to know the strength of the token has triggered a bullish divergence along with RSI. This hints towards a rising strength of the bulls that could elevate the levels close to $0.9, provided the Cardano (ADA) price needs to break above $0.786.
