ADA, the native cryptocurrency of the Cardano ecosystem, recorded a 25% fall during the U.S. market session.to trade at $0.85. The selling pressure followed the broader market downturn as crypto buyers struggled to hold bullish momentum triggered after U.S. President Donald Trump signed for the establishment of a Crypto Strategic Reserve. However, this downturn attracted whale buying in Cardano price, signaling the potential of a major reversal.
Key Highlights:
- The formation of an inverted head and shoulder bolsters Cardano’s price for a rally above $1.5.
- The $1.15 stands as major resistance resistance against ADA buyers.
- Crypto whales purchased 420 million ADA, signaling a buy-the-dip sentiment.
Whale Buying Sparks ADA Recovery Amid Market Downturn
On March 2nd, the Cardano price experienced a remarkable surge of 72% after U.S. President Donald Trump directed his Presidential Working Group on Crypto to move forward with the establishment of a Crypto Strategic Reserve.
However, this coin price witnessed renewed selling pressure at the $1.15 monthly resistance and reverted immediately. This downturn plunged the asset 25% down to trade at $0.84, while the market cap fell $29.6 Billion.
Amid this downturn, the crypto whales showed interest in ADA’s discounted value, signaling a buy-the-dip sentiment.
In a recent tweet, renowned trader Ali Martinez highlighted that crypto whales purchased 420 Million ADA in the past 24 hours.
A chart accompanying the post, sourced from Santiment, illustrates a sharp spike in whale holdings, signaling renewed confidence among high-net-worth investors. The impact of this whale accumulation on ADA’s price action remains to be seen, but historical patterns indicate that such large purchases often precede periods of increased volatility and potential bullish momentum.
Also Read: Ethereum Price Teeters at 1000-day Support Amid Whale Selling— $2k Coming?
Cardano Inverted Head and Shoulders Pattern Hints at $1.5 Rally
In Cradano’s daily chart, the price shows multi-reversals from the $1.157 horizontal level, signaling intense overhead selling pressure. This stable resistance and the recent downswing resulted in the formation of a renowned reversal pattern inverted head and shoulder.
This setup consists of three key troughs: the left shoulder, a deeper head, and a right shoulder, all aligning around a common neckline. If the pattern holds true, the Cardano price will rebound and challenge the $1.157 barrier.
A potential breakout will accelerate the buying pressure and bolster ADA coin to chase a $1.8 high.
Conversely, the ADA coin will shift to a sideways action of buying to continue to defend this neckline resistance.
