Key Takeaways:
Cardano (ADA) saw significant accumulation from its largest holders, with whales adding over 10 million ADA in just 72 hours while the token’s price remained in a tight consolidation pattern. The move, occurring around May 1, pushed the total supply held by these large-scale investors toward 5.71 billion ADA, signaling a deliberate absorption phase rather than reactive buying.
The accumulation trend was highlighted by on-chain analyst Ali Martinez, who noted the steady rise in holdings by wallets with more than 10 million ADA. This quiet buying pressure suggests a reduction in the immediately available circulating supply, a strategy often associated with longer-term positioning ahead of a potential price move.
Despite the heavy accumulation, Cardano’s price has not yet reacted, continuing to trade within a narrow band. The asset has found firm support above $0.2367 but faces immediate resistance at $0.3350. Technical indicators confirm the lack of a strong trend, with the Directional Movement Index (DMI) showing an ADX value of just 9.05, reflecting weak directional strength.
The divergence between whale activity and price action points to a build-up of underlying strength. While the broader market remains cautious, the persistent accumulation by large holders could set the stage for a breakout if demand increases. A decisive move above the $0.3350 resistance is needed to confirm an expansion, while failure to do so could result in continued range-bound trading.
Data from the derivatives market reinforces a growing bullish bias among active traders. According to CoinGlass, top traders on Binance have pushed the Long/Short Ratio to 2.20, with 68.77% of top accounts holding net long positions. This indicates that leveraged participants are increasingly positioning for an upward price movement.
Further supporting this view, the OI-Weighted Funding Rate has flipped positive to 0.0078%. This shift means that traders in long positions are now paying a premium to maintain their exposure, a clear sign that bullish sentiment is becoming dominant in the futures market. While the rate is still moderate, its transition from negative to positive aligns with the increase in long positioning and suggests a cautiously optimistic outlook from derivatives traders.
This article is for informational purposes only and does not constitute investment advice.
