Cardano (ADA) is drawing attention from major investors this June, with whale wallets acquiring a substantial 310 million ADA tokens even as the market faces short-term turbulence. This accumulation comes at a pivotal moment, as ADA’s price action is compressing within a triangle pattern, hinting at a potential breakout that could set the tone for the coming weeks.
Whale Activity Signals Confidence Amid Volatility
Despite a recent dip in price and a pullback from a key resistance trendline, large Cardano holders—often referred to as “whales”—have been steadily increasing their positions. According to on-chain data, wallets holding between 100 million and 1 billion ADA have grown their collective balance from 3.02 billion to 3.15 billion ADA since the start of June. Meanwhile, those with more than 1 billion ADA now control 1.97 billion tokens, up from 1.79 billion at the beginning of the month. This surge in accumulation suggests that institutional and high-net-worth investors are positioning themselves for a possible price recovery as the technical pattern nears resolution.
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Derivatives Market Shows Fading Optimism
While whales are buying, the derivatives market tells a different story. Open Interest (OI) in ADA futures has dropped by over 7% in the past 24 hours, now sitting at $852 million. This decline reflects a withdrawal of capital and waning enthusiasm among traders. The OI-weighted funding rate has also slipped to 0.0084%, down from a recent high, indicating that bullish sentiment is cooling off. The long/short ratio stands at 0.9681, meaning there are more short positions than longs, and recent liquidations have disproportionately affected bullish traders, with $1.49 million in long positions wiped out compared to $460,000 in shorts.
Technical Analysis: Triangle Pattern Nears Resolution
ADA’s price action remains confined within a triangle pattern, with the altcoin recently failing to break above a resistance trendline defined by previous highs. The immediate support is found at $0.60, a level reinforced by a long-term trendline. The convergence of these trendlines forms a classic triangle, often a precursor to a significant price move.
Technical indicators are mixed: the MACD has crossed above its signal line, typically a bullish sign, but the sideways movement of the average line suggests caution. The Relative Strength Index (RSI) is at 46, reversing from the midpoint and signaling renewed bearish momentum, with room to fall before reaching oversold territory.
What’s Next for Cardano?
For investors watching from the sidelines, a daily close above $0.7315 could serve as a confirmation of a bullish breakout, with the next resistance at $0.84. However, if ADA fails to hold above immediate support, further downside could be in play. Market analysts project that, should the bullish structure hold, ADA could target the $0.75–$0.80 range in June 2025, with some forecasts suggesting a broader range between $0.66 and $1.88 for the year, depending on market catalysts and technical developments 1 2 3.
