The Cardano ecosystem has witnessed a significant surge in whale transactions, which could serve as a bullish catalyst for the ADA price in the near future.

Despite the broader market sell-off, Cardano's native cryptocurrency, ADA, has also faced strong selling pressure, correcting over 11% on the weekly chart. As of the current time, ADA is trading 0.36% down at a price of $0.4536, with a market cap of $16.16 billion.

Cardano Whale Activity Reaches Six-Month High

According to on-chain data provider Santiment, transactions involving large sums of Cardano (ADA) tokens, exceeding $100,000 in value, have surged to their highest level since November 8th. This notable uptick in Cardano whale activity has historically coincided with instances of potential price reversals in ADA's market trajectory.

Notably, the market capitalization of ADA has experienced a significant decline, plummeting by 43% since March 13th, indicating a period of substantial volatility and market adjustments for the cryptocurrency.

ADA Price Outlook

Last week, the Cardano (ADA) price lost its major support at $0.50 levels, slipping all the way to $0.45, which is the critical support zone for the altcoin. Should ADA's price experience a decisive decline below its current level, it could potentially stimulate additional bearish momentum, with the next significant support anticipated at $0.4280.

Conversely, ADA's immediate resistance is identified at $0.4920, followed by the psychological threshold of $0.500. A conclusive breakthrough above this level might instigate a rally, potentially propelling ADA towards $0.5250, and even up to $0.5650 in the event of prevailing bullish sentiment.

Despite the broader market's bearish trend, ADA hasn't been immune, experiencing a decline in global market cap, mirroring its subdued Year-to-Date (YTD) performance with a -23.69% contraction. Santiment's data indicates a marginal decrease in active ADA wallets over the past three months, contrasting with signs of market recovery. This anomaly may imply either an undervaluation of ADA or a decline in interest among investors and users.