Cardano at Vital Support as whales accumulate

is trading on shaky ground despite a recent increase in buying pressure.

The central theses

• Cardano is down more than 40% in the last month.
• At the time of writing, ADA is sitting on the top of key support around $0.75.
• Meanwhile, whales seemed to have gone on a spending spree.

Cardano has reached a critical support area after suffering significant losses over the past month. Although the buying pressure appeared to be increasing, there were a few obstacles it had to overcome in order to have a steeper one correction to avoid.

Cardano relies on important support

Whales accumulated ADA, but the layer 1 asset was still threatened with a correction.

ADA plunged more than 40% in the past month. It fell from a high of $1.25 on April 4th to a low of $0.73 on April 30th. The clear downtrend pushed Cardano below a critical support area, which could mean more losses are on the horizon.

The formation of a parallel channel on the daily chart indicated that Cardano could reach the bottom of this technical formation at $0.60 after breaking the middle trendline. A sustained daily close of the candle below $0.75 could serve as confirmation of the bearish outlook.
Source: TradingViewNotably, despite the ongoing downtrend, the buying pressure behind Cardano has increased over the past few weeks.

On-chain data from Santiment showed that the number of addresses exceeded 10 million ADA up 2.14% since April 17. About ten whales joined the network during this period.
Source: SantimentEach of these addresses had accumulated more than $8 million worth of ADA, which could help keep the price above $0.75. But to invalidate the bearish thesis, Cardano would need to reclaim $0.83 as support. In such unique circumstances, it has a good chance of $1.