In a notable move that has caught the attention of both institutional and retail investors, large Cardano holders—commonly referred to as “whales”—have acquired over 120 million ADA tokens within just 48 hours. This significant accumulation phase comes as Cardano’s price remains steady, fluctuating between $0.61 and $0.72, and has sparked renewed speculation about the potential for a broader market rally.
What’s Driving the Whale Activity?
Recent data from the futures market highlights a surge in Taker Buy Dominance, indicating that aggressive market buys are currently leading the trend. The 90-day Cumulative Volume Delta (CVD) remains positive and continues to climb, reflecting sustained bullish sentiment in derivatives trading. This aligns closely with the timing of the whale accumulation, suggesting that these large investors are not only buying on the spot market but are also influencing price action in the futures market.
Additionally, the OI-Weighted Funding Rate for ADA has turned positive, registering at +0.0109%. This shift signals that long traders are now willing to pay a premium to maintain their positions, a real-time indicator of growing confidence in ADA’s upside potential.
Short Squeeze: Bears Caught Off Guard
The recent whale activity has had a tangible impact on market structure. Liquidation data reveals a sharp spike in short liquidations, totaling $251,210, compared to just $8,940 in long liquidations. This imbalance suggests that many traders betting against ADA were forced to close their positions as prices nudged higher, triggering stop-losses and amplifying the upward momentum.
Technical Outlook: Approaching a Key Breakout Zone
At the time of writing, Cardano is trading near $0.7242, testing the upper boundary of a long-term falling wedge pattern. Historically, this trendline has acted as strong resistance, but the combination of whale accumulation, increased liquidations, and positive momentum indicators like the MACD suggest that ADA could be on the verge of a breakout. If the price maintains its current trajectory, the next significant resistance level to watch is $0.8446.
Sustaining the Momentum: What’s Next for ADA?
The coordinated accumulation by whales, coupled with bullish signals in both spot and derivatives markets, has already begun to reshape market sentiment. However, for a sustained rally to materialize, ADA must break through key resistance levels and maintain its momentum. If accumulation continues and retail confidence grows, Cardano could be poised for a more robust and sustained upward move.
