Key takeaways
Why are whales selling less, and what does this mean for the price of Cardano?
Whales have slowed their sales, while retailers are accumulating ADA, signaling a shift towards cautious optimism and early signs of a recovery phase.
How do derivatives metrics indicate strengthening Cardano price momentum?
Rising open interest, dominant buying, and shrinking short liquidations reflect improved trader confidence and growing bullish sentiment in ADA markets.
Whales sold more than 4 million ADA last week, sparking renewed debate about Cardano [ADA] Price path as individual investors return to the market cautiously.
After a week of heavy whale distribution, on-chain data suggests that large owners are beginning to reduce their selling activity.
This slowdown is consistent with an uptick in the accumulation of smaller portfolios, suggesting that retail investors are beginning to absorb excess supply.
This shift indicates a subtle shift in sentiment from fear to cautious optimism.
Historically, such phases precede recovery periods, where the exit of whales creates new entry points for retail investors.
If this pattern continues, the market may enter a new accumulation cycle that precedes a broader Cardano price recovery.
Buy Dominance Highlights…
Taker Buy’s dominance strengthened this week, showing that aggressive buyers are steadily gaining control of the derivatives market.
The rise indicates growing confidence among leveraged traders, who expect Cardano’s price to continue to recover.
Historical data shows that such dominance often signals the beginning of a short-term bullish phase.
According to the CoinGlass websiteShort liquidations rose to $270,000 against just $72,000 in long positions, confirming that bearish traders are being squeezed.
This imbalance adds momentum to the ADA rebound, signaling a decisive shift in sentiment in favor of bullish traders in the near term.
source: Cryptoquant
Higher open interest indicates increased participation in speculation
Open interest (OI) rose 3.3% to $682.66 million, at press time. This indicates that traders are reopening their positions in anticipation of the uptrend continuing.
This rise in speculative exposure complements the measure of buying dominance, highlighting a concerted return to risk appetite.
The correlation between OI growth and ADA recovery indicates that traders are gradually regaining their conviction.
However, if the price fails to break the $0.69 resistance level, this buildup could lead to increased volatility.
However, continued positive derivatives signals reflect a strong belief in a continued recovery trend.
source: Queen Glass
Cardano price rebound!
The combination of tick accumulation, slowing whale activity, and improving technical indicators indicates a growing possibility that ADA may have created a short-term bottom.
Retail traders are gradually returning to the market, accumulating tokens as whale selling pressure begins to subside.
This shift in market dynamics often precedes the early stages of a bullish reversal, especially when accompanied by an increase in trading volumes near critical support areas.
Furthermore, an RSI hovering near oversold levels reinforces that sellers may lose control, allowing buyers to regain dominance.
Historically, such settings have marked the beginning of a sustained recovery, where accumulation leads to renewed price expansion.
If ADA maintains stability above the $0.50 mark, it may attract additional institutional interest, boosting its bullish outlook. However, any breakdown below this area would undermine the recovery structure.
Currently, the growing demand base and improving technical situation indicate that Cardano price may be preparing for a more pronounced upward movement.
Source: Trading View
In summary, despite the whale sell-off, Cardano’s recovery from strong support, rising OI, and Taker Buy Dominance all point to improving market sentiment.
The confluence of these signals suggests that ADA may form the basis for sustainable recovery.
However, a decisive close above $0.69 remains key to confirming a broader bullish reversal and potentially reigniting Cardano’s price rally towards the $1.00 region.
