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- Whales accumulated ADA after a 20% crash, supporting short-term stability.
- Technical indicators show early signs of recovery despite market turbulence.
- Derivatives and on-chain data point to cautious trader optimism.
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Cardano (ADA) steadied on October 11 following a sharp 20% sell-off, as whale investors stepped in to buy the dip. The broader crypto market had just experienced a record $19 billion liquidation, creating heightened volatility across major assets. ADA’s recovery signals early signs that large holders may help stabilize prices in the short term.
Whales Accumulate During the Crash
Data from Santiment revealed a notable increase in wallets holding between 10 million and 100 million ADA, jumping from roughly 466 to 472 addresses between October 10 and 11. This surge in accumulation followed the market-wide liquidation, suggesting that whales saw an opportunity to buy ADA at discounted levels. Historically, buying by large investors indicates confidence in the long-term potential of an asset, helping support prices during turbulent periods.
Technical Indicators Show Tentative Recovery
After flash liquidations pushed ADA to a low near $0.62, the coin stabilized around $0.645. Short-term indicators like the Relative Strength Index (RSI) hovered near 45, while the Chaikin Money Flow (CMF) turned positive, signaling subtle accumulation. While momentum may remain cautious after such a historic sell-off, early signals point toward a potential rebound as whales continue to participate in the market.
Also Read: Cardano Eyes $15B DeFi Growth as Charles Hoskinson Pushes Bitcoin and XRP Integration
Derivatives Market Mirrors Optimism
The derivatives market for ADA also reflected cautious recovery. Open Interest (OI) had plunged sharply during the crash but began stabilizing near $284 million. Funding rates flipped positive at 0.1544, indicating renewed long positions. Together with on-chain accumulation, these trends suggest that both spot and derivatives markets are cautiously optimistic about Cardano’s near-term outlook.
Cardano’s stabilization after a sudden market downturn highlights the influence of whale investors in mitigating volatility. While short-term traders remain cautious, the combination of on-chain accumulation and improving derivatives data hints at a tentative recovery. Market participants will be watching closely to see if ADA can regain momentum.
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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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
