Important points
Why are whale sales decreasing? What does that mean for Cardano price?
While whale sales slow, retailers are accumulating ADA, suggesting a shift to cautious optimism and early signs of a recovery phase.
How do derivatives indicators indicate the strength of Cardano price momentum?
Rising open interest, taker buying dominance, and reduced short liquidations reflect improved trader confidence and growing bullish sentiment in the ADA market.
Whale has sold over 4 million ADAs in the past week, cardano [ADA] The price trajectory is changing as retail investors cautiously re-enter the market.
After a week of intensive whale distribution, on-chain data shows that large whale holders are beginning to scale back their sales activities.
This slowdown coincides with an increase in the accumulation of small wallets, suggesting that retail investors are starting to absorb the excess supply.
This shift marks a subtle shift in emotion from fear to cautious optimism.
Historically, such a phase precedes a recovery period, with the exit of the whale creating a new entry point for retail investors.
If this pattern continues, the market could enter a new accumulation cycle ahead of a broader rebound in Cardano prices.
Taker’s buying advantage highlights…
The taker-buy advantage has strengthened this week, showing that aggressive buyers are steadily gaining control of the derivatives market.
This rise signals growing confidence among leveraged traders who expect Cardano prices to continue to recover.
Historical data shows that such dominance often signals the start of a short-term bullish phase.
According to Coinglassshort liquidations rose to $270,000 while longs were at just $72,000, confirming that bearish traders were being squeezed out.
This imbalance gives momentum to the ADA rally and signals a decisive sentiment shift in favor of bullish traders in the short term.
Source: CryptoQuant
Rapid increase in open interest suggests increased speculative participation
At the time of writing, open interest (OI) increased by 3.3% to $682.66 million. This indicates that traders are re-opening positions in anticipation of continued upside.
This increased speculative exposure complements the taker’s buy advantage indicator and highlights risk appetite-adjusted returns.
The correlation between OI growth and ADA rebound suggests that traders are gradually regaining confidence.
However, if the price fails to break out of the $0.69 resistance, this rally could trigger increased volatility.
Nevertheless, the persistence of positive signals in derivatives reflects strong confidence in the continued recovery trend.
Source: Coin Glass
Cardano price rebounds!
The combination of retail accumulation, cooling whale activity, and improving technical indicators indicates that ADA is increasingly likely to have hit a short-term bottom.
As whale selling pressure begins to subside, retail traders are gradually re-entering the market and accumulating tokens.
This change in market dynamics often precedes the initial stages of a bullish reversal, especially when accompanied by an increase in trading volume near important support zones.
Additionally, the RSI is hovering around oversold levels, confirming that sellers are losing control and buyers may regain the upper hand.
Historically, such setups signal the beginning of a sustainable recovery phase, where accumulation leads to new price expansions.
If ADA sustains stability above $0.50, it could attract more interest from institutional investors and further strengthen the bullish outlook. However, below this zone, the recovery structure may be compromised.
For now, the expanding demand base and improving technological posture indicate that Cardano price may be poised for a more significant rise.
Source: TradingView
In summary, despite Whale’s significant decline, Cardano’s rebound from strong support, rising OI, and taker-buy dominance all point to improving market sentiment.
The confluence of these signals suggests that ADA may form the basis of sustained recovery.
However, a definitive close above $0.69 would be key to confirming a broader bullish reversal and potentially reigniting Cardano price gains towards the $1.00 zone.