Cardano (ADA) on the Rise With Whale Activity, Technical Outlook Suggests Relief Rally

• Cardano (ADA/USD) is taking a stride higher after hitting a two-year low of $0.24, currently trading at $0.265 as of press time.
• Whale activity has been reported to be on the rise, with BNB whales now holding a combined 19.9 million Cardano tokens.
• From a technical outlook, ADA is on a relief rally from the bottom edge of the descending channel.

Cardano (ADA/USD) has been taking a stride higher after hitting a two-year low of $0.24, currently trading at $0.265 as of press time. This comes as whale activity has been reported to be on the rise, with BNB whales now holding a combined 19.9 million Cardano tokens. This portfolio, worth $5.19 million, however, represents less than 1% of the total.

In the last 30 days, large investors have cut their ADA positions, potentially explaining the huge decline in ADA price in December to the multi-year low. There are no clear indications for the recent surge in ADA, however sentiment data showed that ADA was undervalued as of the end of 2022. This could mean that investors are throwing weight on recovery as the price hits depressed levels.

From a technical outlook, ADA is on a relief rally from the bottom edge of the descending channel. The two-year low saw the RSI lower than 30, which is usually seen as oversold. Currently the RSI is at 41, but still far from the overbought level of 70. This suggests that ADA is still far from confirming a bullish trend.

The longer-term outlook for ADA remains uncertain, and investors should proceed with caution. This is because the cryptocurrency has been on a downtrend for a while now, and there is no clear indication of a reversal. Therefore, investors should be careful when trading Cardano and keep an eye on the overall market sentiment.