Key Takeaways
Whales bought 200 million ADA worth $166 million, spot inflows rose, but perpetual activity slowed down. $0.83 remains a make-or-break level for Cardano’s next rally.
At the time of writing, Cardano [ADA] bulls were in focus again after the altcoin gained by 2.82% in the last 24 hours.
Whales and spot investors purchased a notable amount of ADA within this period. However, perpetual trading volumes revealed a misalignment with this buying activity from other cohorts.
That is why it’s worth analyzing how it could play out for ADA in the short term.
Whales and spot bet big on ADA!
Naturally, the biggest market moves came from the altcoin’s whales. These are the addresses holding between 100 million and 1 billion ADA.
According to Santiment, these holders scooped up 200 million ADA, worth about $166 million, between 9 and 10 August.
Source: Santiment
On top of that, spot investors joined the accumulation wave. In fact, CoinGlass data revealed that $11 million worth of ADA was purchased over the same period through Spot Exchange Netflows.
More recently, spot buyers added another $3.61 million – Reinforcing the bullish sentiment across the market.
Source: Coinglass
Are perpetual traders losing steam?
There has been some fading interest among perpetual traders though. In the last 24 hours, for instance, the Long-to-Short ratio in the market fell below 1 – A sign that there may be more selling volume than buying volume.
In fact, trading volume slid by 21.49% to $2.14 billion – A $459 million downtick that hinted at fading activity.
Source: CoinGlass
Worth noting, however, that the overall perpetual market remains intact, with the Open Interest Weighted Funding Rate having a significantly positive reading of 0.0108%.
This means that despite short volumes being higher, a majority of derivative contracts remain from long positions, which continue to pay funding fees.
Can ADA break its wall at $0.83?
ADA’s potential move to reclaim $1 is dependent on breaching resistance levels marked at three points on the chart – $0.83, $0.88, and $0.93, respectively.
Source: TradingView
While ADA is yet to trade into these levels recently, analysis revealed that the last time it entered the nearest resistance zone of $0.83, it triggered a decline of over 20%.
If momentum proves insufficient at this level, ADA will risk a significant decline. However, a clean break above $0.83 could set the stage for a strong rally.
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