Cardano (ADA) soared more than 12% in a single day, breaking above short-term resistance and drawing renewed attention from both whales and institutional investors. This surge coincides with steady accumulation by whales and mechanical buying from index-linked products, suggesting potential changes after months of consolidation.
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A combination of increased trading activity, renewed interest in derivatives, and steady accumulation by major holders has brought Cardano back to the attention of traders. Although questions remain about long-term network activity, recent price movements suggest that market participants are preparing for significant long-term moves.
ADA price is trending down on the daily chart. Source: ADAUSD on Tradingview
Institutional allocation and whale accumulation support Cardano momentum
On-chain data shows that large Cardano holders, commonly referred to as sharks and whales, have accumulated approximately 819 million ADA in the past six months. This buying occurred despite a significant drop in prices, indicating that influential investors view falling levels as an opportunity to build positions.
Exposure to institutional investors has also increased. Asset management firm Grayscale has increased Cardano’s weighting within its smart contract platform Select Capped Index Fund to more than 20%, making ADA the product’s third-largest holding.
While this adjustment is partially driven by index tracking mechanisms, the increase in allocations highlights Cardano’s continued relevance among major smart contract platforms.
This accumulation trend contrasts with retail sentiment during the economic downturn and suggests long-term confidence despite continued competition from rival blockchain ecosystems. Analysts often interpret continued buying when prices decline as a signal that large investors are taking positions ahead of future catalysts.
Technical breakout accelerates ADA price rally
ADA rose from about $0.26 per day to more than $0.29 per day, marking a 12% gain as trading volume surged nearly four times its average level. The move follows a break above a key short-term technical level after weeks of consolidation.
Momentum indicators indicate that a recovery phase is underway. The RSI remains below overbought territory, leaving room for further upside, while measures of trend strength indicate that direction is developing.
The rise in futures open interest, which has expanded by nearly 30% in one day, suggests that new money is flowing into the market, not just short covering.
Currently, the key levels are located near $0.31 as immediate support, while resistance appears near $0.34 and the 50-day moving average. A sustained break above these zones could strengthen the bullish momentum, while a rejection could trigger a consolidation.
The development of the ecosystem adds to the basic story.
Beyond price trends, Cardano founder Charles Hoskinson recently highlighted that the network remains competitive, citing the upcoming Midnight Privacy project as evidence of continued development. The initiative has already secured initial partnerships and aims to expand its enterprise and regulatory use cases.
Still, fundamentals remain mixed. While derivatives activity and investor accumulation are increasing, decentralized finance participation and the total amount locked in the network remains below historical highs, reflecting uneven ecosystem growth.
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For now, Cardano’s rise represents a remarkable coincidence between institutional positioning and technological momentum. Whether ADA is able to sustain its rally above current resistance levels will likely depend on continued capital inflows and broader crypto market sentiment in the coming weeks.
Tradingview’s ChatGPT, ADAUSD chart cover image
