Cardano (ADA ($0.41)) dropped by 3% over the past 24 hours, reflecting broader weakness across the crypto market. Bitcoin, Ethereum, and XRP ($2.02) also declined following a lackluster weekend. However, crypto analysts remain optimistic about ADA’s future price action, citing significant whale accumulation as a bullish signal.

Large investors accumulated over 410 million ADA tokens in April alone. This buying activity suggests confidence in Cardano’s long-term potential, even amid short-term market weakness. Crypto Capital Venture noted that ADA’s current market behavior resembles earlier cycles, where the asset dipped before staging a strong breakout.

Resistance and Support Levels to Watch

Despite recent attempts, Cardano remains stuck below a key resistance level. Last week, ADA tried to move higher but failed to stay above the $0.67 level. This zone now acts as critical support. If ADA maintains this level, a bounce could follow.

24-hour price chart. Source: CoinMarketCap

ADA must break above resistance levels at $0.77 and $0.80 for a clear bullish reversal. A decisive move past these thresholds could trigger further gains and signal the beginning of a more sustained uptrend.

Related article: Cardano Price Stalls: Can ADA Recover Lost Momentum?

Much of ADA’s short-term future depends on broader macroeconomic developments. Market participants await comments from U.S. Federal Reserve Chair Jerome Powell and any indications of upcoming changes in monetary policy. If economic news proves favorable, ADA could break out and potentially target $1.25 over the long term.

Altcoin Season Not Here Yet

Although ADA and other altcoins show signs of recovery, the overall market still favors Bitcoin. The CMC Altcoin Season Index currently stands at 26 out of 100, indicating that the market remains in “Bitcoin Season.” This is a modest improvement from last month’s reading of 16 but still far from the 75 needed to declare “Altcoin Season.”

Related article: Cardano (ADA) Soars 10% in a Week: Can It Reclaim the $1 Mark Soon?

Bitcoin dominance may continue rising toward 70% before it eventually declines, limiting short-term gains for altcoins. Nevertheless, positive indicators are forming in the background. Global liquidity continues to rise, a condition that supported previous crypto bull markets. 

Additionally, growing expectations for U.S. interest rate cuts and a broadly neutral-to-bearish sentiment are helping set the stage for a favorable altcoin environment in the coming months.

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