Cardano's ADA has been struggling through a long drawdown, even after bouncing from lows near $0.30. Despite this, recent activity suggests a potential rebound could be forming. Whales have returned to accumulate ADA, signaling that informed investors may see value at current levels. With daily trading volume spiking and support holding near $0.38, traders are closely watching whether the market can sustain momentum and challenge resistance levels.
Whale Activity Drives Accumulation
Recent on-chain data revealed significant whale purchases in ADA. Two wallets belonging to the same whale executed over 10 orders, buying a total of 6.46 million ADA for around $2.5 million. The purchases averaged $0.38, coinciding with a key support level. This accumulation signals that larger investors may anticipate a rally and reinforces confidence for others looking to enter.
The buying activity caused a sharp increase in daily trading volume, surpassing $600 million. Although ADA’s price rose less than 1% in that time, the spike suggests strong market participation. Historically, similar whale activity often precedes periods of sustained upward momentum. Analysts see this accumulation as informed money moving in at favorable prices.
Short-term risk indicators also support accumulation. ADA’s bubble risk was measured at 0.659, reflecting an oversold condition. The crypto market tends to rebound after such oversold periods, as low valuations attract buyers. Further, Cardano’s drawdown from its all-time high is around 86%, confirming the altcoin remains undervalued. These conditions make current levels attractive for investors considering long-term positions.
Price Action and Support Levels
Cardano's ADA appears to have successfully defended the $0.38 support zone, which previously acted as resistance. This level aligns closely with the whale purchases, providing a foundation for potential upward movement. Consolidation above this support suggests the accumulation process is ongoing. If buyers maintain momentum, ADA could test resistance near $0.43. Breaching that level would shift market structure toward a bullish trend.
Traders are watching carefully, as this move could attract additional buying and push prices higher. Conversely, a breakdown below $0.38 could trigger sell-offs from weaker hands and invalidate short-term bullish expectations. Overall, Cardano demonstrates strong accumulation signals from whale activity, oversold conditions, and price support. While confirmations are needed, including broader market alignment, current data suggest the altcoin may be preparing for a recovery.
Investors and traders should continue monitoring both on-chain signals and price behavior to gauge potential next moves. With whales buying at key levels, growing volume, and support holding, ADA shows potential for a rebound. However, careful risk management remains essential, as market momentum will dictate whether bulls can sustain the upward push. Short-term trends and key levels like $0.43 and $0.38 will remain crucial indicators for traders.