Cardano [ADA] faced significant selling pressure this week as whales unloaded over 4 million ADA, triggering renewed debate about the altcoin’s short-term outlook. However, despite this heavy distribution, on-chain and derivatives data suggest that the market may be gearing up for a potential bullish recovery toward the $1 mark.
According to recent data, large holders have begun slowing their sell activity, indicating that the wave of whale distribution is easing. Meanwhile, retail investors appear to be stepping in, gradually absorbing the excess supply and re-establishing accumulation patterns.
This shift hints at a sentiment transition from fear to cautious optimism, a trend historically observed during the early phases of recovery cycles in Cardano’s market behavior.
Taker Buy Dominance Shows Growing Buyer Confidence
Market data reveals that Taker Buy Dominance—a metric tracking aggressive buyer activity—has strengthened this week. The rise indicates growing confidence among leveraged traders betting on ADA’s rebound.
Short liquidations have surged to $270,000, compared to just $72,000 in long positions, suggesting that bearish traders are being forced to close positions as momentum shifts in favor of bulls. This liquidation imbalance often serves as an early signal of a short-term bullish phase in crypto markets.
Open Interest Surge Highlights Speculative Revival
In the derivatives market, Open Interest (OI) rose by 3.3% to $682.66 million, reflecting renewed speculative participation and increasing trader conviction. This uptick in OI aligns with the strengthening of Taker Buy Dominance, reinforcing that traders are regaining confidence in ADA’s upside potential.
However, analysts caution that if Cardano fails to break the $0.69 resistance decisively, heightened volatility could follow as open positions adjust. Still, the persistence of these bullish derivatives signals suggests a recovery trend gaining traction.
Cardano Price Poised for Recovery
Technically, Cardano’s rebound appears to be stabilizing as retail accumulation strengthens and whale sell pressure subsides. The RSI hovering near oversold levels supports this outlook, signaling that sellers may be losing control.
If ADA maintains a foothold above $0.50, it could attract fresh institutional interest, reinforcing the bullish case. However, a decisive break below that level could undermine the recovery structure.
For now, the convergence of retail demand, easing whale pressure, and improving derivatives data suggests a market preparing for a potential breakout toward $1.
Analysts note that a decisive close above $0.69 would confirm a broader bullish reversal and possibly reignite the rally toward the key psychological target.