After ending the last five trading days in decline, Cardano (ADA) saw a slight increase on Wednesday, inching close to the $0.25 mark. According to the latest data displayed by CryptoAppsy, ADA is trading at $0.2499, reflecting a modest 0.68% rise over the past 24 hours. Despite these minor signals of upward movement, analysts note that Cardano’s technical outlook continues to appear weak.
Large investors accumulate ADA
On-chain analytics provider Santiment revealed that wallets with large ADA balances have accumulated nearly 250 million ADA since May 11. Addresses holding between 100,000 and 100 million ADA collectively added this volume, highlighting ongoing institutional interest in Cardano.
Such periods of intense accumulation suggest that major investors are taking advantage of Cardano’s price pullbacks. Technical analyst Ali Charts recently pointed out that the TD Sequential indicator, which correctly predicted ADA’s recent 15% drop, is now flashing a fresh buy signal.
Glossary: The TD Sequential is a widely used technical analysis tool designed to identify trend reversal points in financial markets. It is known for generating buy or sell signals, particularly over short timeframes.
According to Ali Charts, following the sell signal from TD Sequential at the start of May, Cardano experienced a 15% correction. He notes that as long as the $0.246 support holds, ADA could first rise to $0.255 and then to $0.262.
Technical indicators reflect ongoing weakness
ADA remains beneath its key exponential moving averages (EMAs). The 50-day EMA sits at $0.258, the 100-day EMA at $0.28, and the 200-day EMA at $0.355. The Relative Strength Index (RSI) is currently at 43, while the MACD continues to give bearish signals.
Overcoming these technical levels will likely play a critical role in ADA’s price recovery. Meanwhile, Bollinger Bands indicate that ADA is moving sideways along the midline, with the lower band at $0.2393 serving as a nearby support.
On the upside, the first strong resistance stands at the 50-day EMA of $0.258, followed by the Fibonacci retracement level at $0.271 and a trend resistance at $0.274. Key supports are found at $0.245 and $0.236, with the February low at $0.22 also drawing attention.
New integrations for the ADA ecosystem
The Cardano Foundation has released an updated real-world asset (RWA) tokenization framework through Cardano Academy, aiming to further integrate Cardano’s ecosystem with practical use cases. The document explains how Cardano’s existing technology can be used to digitize physical assets.
Glossary: The Cardano Foundation is a non-profit organization based in Switzerland established to support the development and adoption of the Cardano blockchain.
In the derivatives market, signals remain mixed. According to CoinGlass, the long/short ratio for ADA has dropped to 0.80, its lowest value in a month. Nevertheless, the open interest-weighted funding rate has turned positive at 0.0072%, indicating that while short positions dominate in the short term, buyers are starting to step in, albeit modestly.
Ali Charts emphasizes that the $0.246 support remains the critical level for ADA investors to watch in the coming days, as daily closes above this mark could influence price movement significantly.
