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The price of Cardano is still under pressure due to the higher times, as it is down around 12% month to month. But beneath the vulnerable surface, a different story unfolds. The momentum is stabilizing, the selling pressure is reducing, and one of the largest groups of Cardano whales is starting to add aggressively.
This change is not accidental. This closely aligns with the bullish divergence, a structure that has previously preceded strong upward moves in ADA.
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An upward divergence in the RSI indicates a possible trend reversal
The first piece of configuration appears on the daily chart.
Between November 21 and December 18, registration Sermon The low is lower, while the Relative Strength Index (RSI) is higher. The RSI indicator measures momentum. When the price weakens but the RSI improves, it looks like the sellers are losing steam even though the price continues to decline. This is the classic bullish divergence in the RSI indicator, often associated with trend reversals rather than short-term rebounds.
A similar structure appeared earlier in this cycle between the end of November and the beginning of December. After this divergence persisted, Cardano increased by almost 30% in eight days.
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RSI does not work alone. What matters now is whether the behavior in the chain confirms that the sellers are indeed pulled back.
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Whales intervene as currency activity declines
The data of the series show a strong confirmation.
Portfolios that hold between 100 million and 1 billion US dollars, according to The largest group of whales in Cardanoincreased its participation from December 20. Its balances increased from $3.74 billion to $3.84 billion, an addition of nearly $100 million. At current prices, this equates to about $36 million added during a period of weak price action.
This purchase corresponds directly to the changes in the age category scale of the coins that are consumed. This metric tracks the number of coins that are moved, often reflecting sales activity. On December 16, the coins spent peaked, and the whales distributed supplies. As the spent coins fell, the accumulation of whales resumed.
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The pattern is consistent.
As currency activity (and perhaps selling pressure) increases, the whales retreat. When the sales activity fades, the whales add.
This behavior suggests that top pickers react to reduce selling pressure, not to pursue price strength. This reinforces the bullish divergence-positive signal of the Positive Signal Index indicator, which shows that weak selling pressure is receiving support from major whales.
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Key Cardano price levels that determine the outcome
Even with the moment of improvement and the whales accumulate, the confirmation of the price is still important.
in order to Cardano ignores the reversal attemptit should retake key resistance levels. The first significant signal of strength appears above $0.44, but the real confirmation is closer to $0.47. A clean break above this zone closely aligns with the previous high after the divergence and opens the door towards $0.50, a key level.
If the momentum continues and the whales continue to accumulate, $0.50 to $0.55 is due in support market conditions.
Downside risks remain clear. If ADA loses $0.34, the reversal hypothesis is greatly weakened. Any break below this level would indicate a return of selling pressure. History suggests that whales may begin to sell at that time.
