Cardano Price In Consolidation, But Strong Momentum Ahead?

Cardano price stayed in a narrow range after whales sold 50 million ADA in just two days.

The move took place while the coin traded close to a key support level, leaving traders focused on the next direction.

Market signals showed both positive and negative signs as attention turned to crucial resistance zones.

Whales Sell 50 Million Cardano While Price Holds

Large holders of Cardano sold 50 million ADA in 48 hours, a selloff that took place as the price traded near $0.8176.

Despite the size of the selloff, the coin stayed above the $0.80 support that had been tested twice in September.

It is important to clarify that this level was seen by many as an important line for traders.

Cardano ranked number 10 among digital assets by market size. Its market capitalization stood at $29.95 billion.

Trading activity dwindled, with 24-hour volume at $627.8 million. The coin rose 6.6% in the past month and fell 2% in the past day.

Meanwhile, technical charts pointed to mixed outcomes with a buy signal appearing from the TD Sequential indicator.

The 50-day moving average sat at $0.83 while the 200-day moving average was at $0.73, both showing a longer-term upward path.

However, it is worth noting that a resistance zone between $0.84 and $0.86 created a hurdle.

Still, analysts noted that a close above $0.84 could push the price toward $0.90.

Talk of a Parabolic Phase

Some analysts said Cardano might have entered what is called a parabolic phase. In trading, this stage often brings strong upward momentum.

Notably, the idea gained ground as the coin managed to stay above $0.80 even with heavy selling from whales.

Interest in derivatives also supported this view as open interest stayed above $1.570 billion after a rise in mid-August.

This showed that traders in the futures market continued to hold positions, pointing to confidence in further movement.

Still, not everyone agreed as some analysts said that clearing resistance near $0.84 to $0.86 would be key.

Without this, Cardano might continue to move sideways rather than climb higher. Traders also warned that the same level could act as a ceiling and slow gains.

Cardano Key Patterns and Next Triggers

Meanwhile, charts on the 4-hour timeframe showed Cardano nearing the end of a falling wedge pattern.

As disclosed, this pattern was formed by linking the highs from August 14 and August 25 with the lows from August 20 and September 1.

Cardano price has now tested the upper line of this wedge. A close above the 200-period Exponential Moving Average at $0.8335 would confirm a breakout.

If this happened, analysts pointed to the R1 pivot level at $0.8913 as the next possible target.

Momentum signals, however, sent mixed signals. The Moving Average Convergence Divergence approached a bullish crossover, hinting at stronger buying. The Relative Strength Index read 52, showing a slight increase in demand.

However, the 50-period Exponential Moving Average slipped under the 200-period EMA, forming what traders call a Death Cross. This sign often points to weakness.

If Cardano price failed to break higher, the coin could fall back toward the wedge support near $0.7788. Traders saw this as the downside risk if resistance proved too strong.

While initially, Cardano price stayed steady despite a large selloff by whales, it fell later in the day. While some charts pointed to possible gains, others warned of pressure ahead.

The next move would depend on whether the coin could break above resistance or slide back toward support.