Cardano's Price Surge and Subsequent Decline: Key Factors to Watch

Cardano recently experienced a significant price movement, initially showing a bullish divergence with a 24% surge. According to NS3.AI, this increase was driven by retail buying, as indicated by the Money Flow Index. However, the rally was short-lived, as whales sold over 2 billion ADA, approximately $540 million, within three days. This large-scale selling overwhelmed retail demand, resulting in a 17% price drop. Looking ahead, Cardano's price trajectory will depend on its ability to break the $0.31 resistance level and whether whales begin to re-accumulate. Without renewed whale buying, further declines toward $0.21 and below are possible.