Cardano [ADA] Primed for Surge: Whale Accumulation & Bullish Signals Point to Rally

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Despite a minor 1.69% dip in the past 24 hours, Cardano [ADA] demonstrates underlying strength, having rallied by an impressive 7.62% over the last month. This recent price retraction mirrors a broader market correction that saw the total cryptocurrency market capitalization recede to $3 trillion. However, insights from AMBCrypto suggest that ADA is well-positioned to reignite its upward trajectory in the near future, fueled by significant whale accumulation and sustained spot market activity.

Whale Activity Signals Strong Long-Term Conviction

Over the past month, large-scale investors, commonly known as whales, have been actively accumulating Cardano tokens. This influential cohort has reportedly purchased a substantial 410 million ADA, valued at approximately $285 million during this period. This strategic buying into price weakness often serves as a strong indicator of long-term conviction in the asset’s potential. The accumulation phase occurred while ADA’s price remained relatively subdued, hinting at expectations among these major players for a future price breakout.

Whales accumulated over 410 million #Cardano $ADA in April! pic.twitter.com/8Qa6xCaWtb

— Ali (@ali_charts) May 2, 2025

Bullish Spot Market Netflow Underpins Rally Potential

Adding to the optimistic outlook, the spot market for Cardano has exhibited a consistently bullish Netflow over the preceding months. Exchange Netflow, a metric that compares buying and selling activity, reveals a clear dominance of purchasing pressure. Since March, approximately $416 million worth of ADA has been absorbed from the market. While this steady accumulation hasn’t yet translated into a sharp price surge, it strongly suggests that spot traders are actively positioning themselves in anticipation of a significant rally.

Also Read: Cardano (ADA) ETF Hopes vs. On-Chain Struggles: Can It Break the Lag?

Technical Indicators Point Towards Potential Breakout

Currently trading around $0.7034, Cardano is navigating a key resistance level that it has tested for the past ten days. Analysis using Fibonacci retracement levels indicates potential barriers and support zones for ADA’s price movement. Furthermore, examination of the Liquidation Heatmap reveals multiple liquidity clusters stacked above the current price, reaching as high as $0.74. These liquidity zones tend to act as magnets for price action, suggesting that ADA could overcome its immediate resistance and move towards these higher price targets.

In the derivatives market, bullish sentiment remains robust, with long traders actively establishing new positions, as evidenced by a rising Open Interest of $778.99 million. A positive Funding Rate of 0.0084% further reinforces this bullish bias, indicating that the majority of derivative positions are currently long. In conclusion, the consistent accumulation by whales and traders, coupled with supportive technical indicators, paints a promising picture for Cardano’s potential to resume its upward momentum in the short to medium term.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.