Cardano’s ADA has rebounded over the past week, with some key factors supporting a more substantial upward trend ahead. Another element, though, suggests a renewed correction might be on the way.

Several analysts believe Bitcoin (BTC) has yet to reach its bottom for this cycle, while the recent exodus from exchanges hints that Ethereum (ETH) might be gearing up for a rally.

ADA Stuck in an Indecisive Zone

Earlier this week, Cardano’s native token soared to a two-week high of around $0.18 before retracing to the current $0.166 (per CoinGecko). This represents a 5% weekly increase, while the latest whale activity hints at a further upswing in the near future.

The large investors recently boosted their total holdings to 25.6 billion coins (the highest level since February). The stash translates into roughly 70% of the token’s circulating supply. Moreover, whales have bought 30 million ADA (worth more than $5 million) over the last 30 days.

These market participants rarely make intuitive decisions, as some believe they enter the ecosystem after careful research or inside information that others lack. That said, their activity may encourage smaller players to hop on the bandwagon, too.

Another bullish ADA element is its Relative Strength Index (RSI), which yesterday (July 23) slipped to 28 and now stands at 31. It remains quite close to the oversold zone that is usually seen as a buying opportunity.

On the other hand, exchange inflows have recently exceeded outflows, meaning that investors have moved some of their holdings to centralized platforms, thereby increasing immediate selling pressure.

Major BTC Warning

The bear market over the past several months has been quite persistent, briefly dragging Bitcoin’s price below $60K. It currently trades at nearly $65,000, and every resurgence gives some investors hope that the bulls might finally regain full control.

However, X user BATMAN poured cold water on these expectations, drawing a parallel between BTC’s current performance and that of the autumn of 2022, which was later followed by a massive collapse to roughly $16,000.

Other short-term skeptics include Kabuki and Ali Martinez. The former predicted a plunge to $47,000 by August, while the latter noted that the following month has historically been an unfavorable period for BTC, resulting in a correction every time since 2022.

ETH’s Next Move?

Earlier this week, the second-largest cryptocurrency made another attempt to surpass the $2,000 psychological level but was rejected and currently trades at around $1,880.

Still, the declining amount of ETH stored on exchanges suggests the bears may soon loosen their grip. Over the past month, investors have withdrawn approximately 1 million units (worth over $1.8 billion at ongoing rates) from centralized platforms. The total figure dropped to a 10-year low of roughly 15.1 million ETH as the development results in reduced immediate selling pressure.

Analysts on crypto X remain largely optimistic about the asset. Not long ago, Arthur Hayes acquired ETH for over $2.5 million, while popular pundits like KALEO think the price could rise toward $2,400 within the next month. However, the latter warned that the pump might be short-lived and followed by a major crash to nearly $1,200 by September.

Source: CryptoPotato