Cardano at key support as whale accumulation signals potential rally

Cardano (ADA) is trading around $0.24 after a prolonged decline, down more than 40% over the past three months and still well below prior highs. While price action has remained weak, on-chain and market data suggest a different dynamic may be developing beneath the surface.

Whale activity rises to a 4-month high

According to Santiment data cited in the article, wallets holding at least 10 million ADA have increased to 424, the highest level since December. The rise has occurred during a period of falling prices, a pattern that can indicate large holders accumulating quietly while broader sentiment remains subdued.

The article notes that this kind of divergence has historically appeared near major turning points, with bigger investors positioning early before a wider recovery begins.

Derivatives market signals ongoing pressure

Despite the accumulation signal from large wallets, derivatives data remains softer. Futures open interest has fallen by about 8% in 24 hours, with long positions taking the biggest hit. Funding rates have also turned negative, indicating that short sellers currently hold the advantage in the market.

Taken together, the article suggests that while large holders are building positions, short-term traders remain defensive and are still pricing in further downside.

ADA tests a key support range

On the technical side, ADA is trading within a support range of $0.22 to $0.28. The article describes this zone as the most important level in the current structure, having previously acted as a base for strong rebounds.

Crypto analyst Alpha Crypto Signal is quoted as saying ADA moved out of a descending wedge on lower timeframes and pushed toward the $0.27–$0.29 area. However, the analyst cautioned that failure to sustain the move could pull the price back into the support range.

“ADA now pushing into prior supply, but holding above the breakout zone keeps the bias bullish. As long as ADA sustains above this level, continuation toward 0.27–0.29 is likely.”

Near-term outlook: support holding and possible reversal signals

The article frames the next few sessions as potentially decisive. It states that holding above support while accumulation continues could help stabilize the price and gradually change the structure.

It also references an additional market view from an X user pointing to a possible double bottom alongside a falling wedge reversal, which—if confirmed—could indicate a larger cycle shift. For now, ADA is described as being at a central inflection point, balancing continued downside pressure with early signs of accumulation.