Whales accumulate 150 million ADA…Will Cardano's rise begin?

▲ Cardano (ADA) ©

Cardano ADA has rebounded by over 15% this week, and expectations for further price increases are growing due to large-scale accumulation by whale investors combined with bullish signals in the derivatives market. However, analysis suggests that since it remains below key moving averages, a decisive breakout above major resistance levels will be crucial for a full trend reversal.

According to the investment media FXStreet on July 3 (local time), Cardano is trading above $0.160, with a cumulative gain of over 15% this week. The possibility of a short-term upward trend continuing has been raised due to continued accumulation by whale investors during the recent price correction, along with improving derivatives indicators and technical trends.

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

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

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

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