The number of Cardano’s richest investors holding ADA has reached its highest level in almost a year. However, the price of ADA is at risk of falling by over 20% in August due to a breakdown stage of a classic technical pattern called Bump-and-Run-Reversal (BARR). This pattern occurs when excessive speculation drives prices higher quickly, leading to a “bull trap” situation. Currently, Cardano appears to have entered the Run phase of the BARR pattern, with a downside target of $0.22 in August or early September. On the other hand, if there is a rebound, ADA’s price could reach the 50-day exponential moving average near $0.30 or even the 200-day EMA near $0.34. Despite the bearish risks, on-chain fundamentals suggest that whales and sharks have been accumulating ADA during its price decline, indicating their confidence in future gains. Additionally, Cardano’s key network metrics, such as total-value-locked and daily dapp transactions, have been growing in the second quarter, which could contribute to upward pressure on ADA’s price.
