- Cardano (ADA) dropped over 10% this week after breaking a key trendline, turning market sentiment bearish.
- However, whale accumulation at a critical demand zone has sparked a 3% rebound, hinting at a possible short-term recovery.
Cardano Takes a Hit: One of the Week’s Top Losers
Cardano (ADA) suffered a significant setback this past week, plunging over 10% to become one of the biggest losers in the crypto market. The drop followed a sharp shift in market structure as ADA broke below a long-held uptrend line dating back to April 7th. This technical breakdown sparked a bearish turn in sentiment, inviting a wave of selling pressure and placing the altcoin in a vulnerable position.
The Bright Spot: Whales Are Stepping In
Despite the decline, hope may be on the horizon. As ADA dipped into a historically significant demand zone, whales—large investors holding substantial ADA positions—began to accumulate. According to on-chain data from CryptoQuant, this buying spree suggests strong interest in ADA at current levels. The price has already rebounded around 3% in the last 24 hours, indicating that bullish pressure may be building from the bottom.
Demand Zone in Focus: Reversal or More Pain?
The demand zone where ADA currently sits has acted as a key support level in the past. If bulls can maintain momentum and establish a higher low, a price reversal could be underway. However, if buyers fail to defend this zone, another leg down remains possible.
Traders should watch for Cardano to recapture the broken trendline—an event that could confirm a bullish reversal. Until then, the asset remains in a tug-of-war between bullish whale confidence and broader bearish market sentiment.
Cardano Next Move Could Define Its Short-Term Future
ADA’s sharp correction has rattled investor confidence, but the surge in whale activity suggests a potential bounce-back. The coming days are critical. If support holds and accumulation continues, Cardano could shake off this week’s losses and mount a short-term recovery. But if demand weakens, ADA may spiral lower. For now, the bulls have a shot—if they can seize the moment.
