Whales Accumulate 150 Million ADA… Will Cardano's Rally Begin?

▲ Cardano (ADA) ©

As Cardano ADA (ADA) has rebounded more than 15% this week, large-scale accumulation by whale investors combined with bullish signals from the derivatives market is fueling expectations for further price increases. However, analysis suggests that whether a full trend reversal will occur depends on breaking key resistance levels, as it remains below major moving averages.

According to investment media FXStreet on July 3 (local time), Cardano traded above $0.160, with its cumulative gain for the week exceeding 15%. The recent price correction period saw continued accumulation by whale investors, coupled with improving derivatives indicators and technical trends, raising the possibility of a continued short-term rally.

According to Santiment's Supply Distribution data, whale investors holding between 100,000 and 1 million ADA, 1 million and 10 million ADA, and 10 million and 100 million ADA have collectively accumulated an additional 150 million ADA since June 25. The media noted that this bottom fishing during the price decline is a signal of large investors' long-term buying intent and could act as a factor supporting the short-term price floor.

Bullish signals also emerged in the derivatives market. According to CoinGlass, ADA futures open interest increased from $335 million in mid-June to $403 million, indicating expanding investor participation in the market. The open interest-weighted funding rate also turned positive early this week, reaching 0.0085%. This structure, where long position investors pay costs to short position investors, suggests overall bullish sentiment in the market, the media explained.

Technically, ADA continues to trade below its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), maintaining a bearish trend in the medium to long term. However, the Relative Strength Index (RSI) has recovered to around the neutral line of 50, and the Moving Average Convergence Divergence (MACD) remains above the 0 line, showing improving momentum. On the upside, $0.173 was presented as the first resistance level, followed by the 50-day EMA at $0.185, and the $0.195, $0.213, $0.219, and $0.222 ranges were identified as major resistance zones. Conversely, on the downside, the recent trading ranges of $0.164 and around $0.138 were suggested as key support levels.

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