Key Takeaways
Why are whales selling less, and what does it mean for Cardano price?
Whales have slowed their selling, while retail traders are accumulating ADA, suggesting a shift toward cautious optimism and early signs of a recovery phase.
How do derivatives metrics signal strengthening Cardano price momentum?
Rising Open Interest, taker buy dominance, and shrinking short liquidations reflect improving trader confidence and growing bullish sentiment in ADA markets.
Whales have sold over 4 million ADA in the past week, sparking renewed debate about the Cardano [ADA] price trajectory as retail investors cautiously re-enter the market.
After a week of intense whale distribution, on-chain data indicates that large holders are starting to reduce their selling activity.
This slowdown aligns with an uptick in smaller wallet accumulation, suggesting that retail investors are beginning to absorb excess supply.
The shift signals a subtle transition in sentiment from fear to cautious optimism.
Historically, such phases have preceded recovery periods, where whale exits create new entry points for retail investors.
If this pattern persists, the market could be entering a fresh accumulation cycle that precedes a broader Cardano price rebound.
Taker buy dominance highlights…
Taker Buy Dominance has strengthened this week, showing that aggressive buyers are steadily gaining control in the derivatives market.
The rise indicates growing confidence among leveraged traders, who expect the Cardano price to continue recovering.
Historical data show that such dominance often signals the start of a short-term bullish phase.
According to CoinGlass, short liquidations have risen to $270K against only $72K in longs, confirming that bearish traders are being squeezed out.
This imbalance adds momentum to ADA’s rebound, signaling a decisive sentiment shift favoring bullish traders in the near term.
Source: CryptoQuant
Open Interest surge points to rising speculative participation
Open Interest (OI) has increased by 3.3% to $682.66 million, at press time. This signals that traders are reopening positions in anticipation of continued upside.
This rise in speculative exposure complements the taker buy dominance metric, highlighting a coordinated return of risk appetite.
The correlation between OI growth and ADA’s rebound suggests that traders are gradually regaining conviction.
However, if the price fails to break the $0.69 resistance, this buildup could trigger heightened volatility.
Still, the persistence of positive derivatives signals reflects a strengthening belief in the ongoing recovery trend.
Source: CoinGlass
Cardano price rebounds!
The combination of retail accumulation, cooling whale activity, and improving technical indicators signals a growing possibility that ADA may have established a short-term bottom.
Retail traders are gradually re-entering the market, accumulating tokens as whale sell pressure begins to subside.
This shift in market dynamics often precedes the early stages of a bullish reversal, especially when accompanied by increasing trading volumes near critical support zones.
Moreover, the RSI hovering near oversold levels reinforces that sellers may be losing control, allowing buyers to regain dominance.
Historically, such setups have marked the beginning of sustainable recovery phases, where accumulation leads to renewed price expansion.
If ADA maintains stability above the $0.50 mark, it could attract additional institutional interest, further strengthening its bullish outlook. However, any breakdown below this zone would undermine the recovery structure.
For now, the growing demand base and improving technical posture indicate that the Cardano price might be preparing for a more pronounced upward move.
Source: TradingView
To sum up, despite heavy whale sell-offs, Cardano’s rebound from strong support, rising OI, and Taker Buy Dominance all hint at improving market sentiment.
The confluence of these signals suggests that ADA may be forming a foundation for a sustained recovery.
However, a decisive close above $0.69 remains key to confirming a broader bullish reversal and potentially reigniting the Cardano price rally toward the $1.00 zone.
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