- Cardano whales have accumulated 310 million ADA in June, signaling strong confidence despite short-term bearish sentiment and declining Open Interest.
- The price remains squeezed within a triangle pattern, with a breakout above $0.7315 or a breakdown below $0.60 likely determining the next major move.
Whale Accumulation Signals Confidence Amid Market Turbulence
Despite a recent dip in Cardano’s (ADA) price action, large-scale investors—commonly referred to as whales—are making bold moves. In June alone, whales have purchased an impressive 310 million ADA tokens, showcasing renewed confidence in the project’s long-term potential. This activity comes as Cardano’s price hovers near the apex of a triangle pattern, which often precedes a decisive breakout or breakdown.
According to data from Santiment, two key whale groups have been actively accumulating ADA. Wallets holding between 100 million and 1 billion ADA expanded their combined holdings from 3.02 billion to 3.15 billion tokens. Similarly, those with over 1 billion ADA increased their share from 1.79 billion to 1.97 billion tokens since June 1. This rise in whale holdings could serve as a bullish precursor, potentially igniting a mid-term recovery.
Derivatives Data Paints a Bearish Short-Term Outlook
While whales accumulate, the derivatives market is showing signs of fatigue. According to CoinGlass, Cardano’s Open Interest (OI) has dropped over 7%, landing at $852 million in the past 24 hours. The drop in OI reflects reduced trader participation and waning bullish sentiment.
The funding rate has slipped from 0.0108% to 0.0084%, while the long/short ratio stands at 0.9681—indicating more traders are betting on ADA’s decline. Moreover, a spike in long liquidations totaling $1.49 million, compared to only $460K in shorts, further highlights a bearish tilt.
Triangle Pattern Nears Resolution as Indicators Flash Mixed Signals
Technically, Cardano is struggling to break above a descending trendline drawn from its March 3, May 12, and May 23 peaks. The price dropped 2.61% on Wednesday and is now approaching crucial support near $0.60, defined by a trendline stemming from the lows of November 5, April 9, and June 5.
Although the MACD indicator flashes a tentative buy signal, its sideways momentum suggests possible weakness ahead. Meanwhile, the RSI at 46 signals growing bearish momentum with room to fall further.
For bullish confirmation, ADA needs to close above $0.7315, the June 11 inflection point. A successful breakout could pave the way to $0.84, but until then, the market remains at a critical juncture.
Cardano whale accumulation hints at long-term optimism, but short-term technicals suggest caution. Traders should watch for a breakout above $0.7315 or a breakdown below $0.60 for the next decisive move.
