The Cardano (ADA) network’s Leios testnet has reached a new milestone, achieving throughput six times greater than Cardano’s mainnet. Despite this technical progress, ADA’s price remains just below the $0.20 resistance mark, an area closely watched by traders due to ongoing profit-taking activity.
Key buying activity at low price levels
In recent trading sessions, Cardano’s daily volume reached $375,658,800, signaling increased market activity. Institutional-sized holders, often referred to as ‘whales,’ have played a significant role in shaping this movement. Over the past week, investors acquired approximately 160 million ADA tokens at an average price of $0.1776. Most of these purchases were made by wallets holding between 10 million and 100 million ADA, indicating that large stakeholders are positioning themselves at current price levels.
As ADA consolidates, two potential scenarios emerge. Cardano could stage a significant rebound following a 93% decline since its all-time high, or increased short-selling might trigger a retest of the demand zone near $0.14 to $0.15—a level last observed in June.
Whale distribution and potential for a bullish reversal
Shorter time-frame indicators reveal mixed signals. Some larger holders have been distributing assets, which may reflect portfolio adjustments or partial profit-taking. However, on the daily chart, whales have consistently accumulated ADA for the past ten days, contributing to a Chaikin Money Flow (CMF) reading of 0.08—a level associated with increasing buy-side pressure.
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AAPLThe Chaikin Money Flow is a technical indicator designed to measure the volume and flow of money into or out of a security, often used to assess large-holder sentiment in cryptocurrency markets.
Mini dictionary: Chaikin Money Flow (CMF), a momentum indicator that assesses buying and selling pressure by analyzing price and volume to estimate whale sentiment.
Whales have maintained consistent ADA purchases for ten consecutive days, driving the CMF to 0.08—a development many interpret as growing conviction among large investors.
Meanwhile, retail traders are following the SuperTrend indicator, with ADA’s price currently finding support near $0.182 after breaking above this resistance. The next critical barrier appears to be the 200-day exponential moving average (EMA) at $0.246, which has traditionally acted as a key supply zone where sellers dominate.
On shorter intervals, crucial resistance stands at the $0.202 to $0.208 range, a zone ADA must reclaim to signal broader recovery.
| Key Metric | Current Level | Significance |
|---|---|---|
| Trading Volume | $375,658,800 | Signals increased activity |
| Major Whale Buy | 160 million ADA at $0.1776 | Ongoing accumulation |
| CMF Indicator | 0.08 | Positive whale sentiment |
| Main Support | $0.182 | Converted resistance to support |
| Main Overhead Supply | $0.246 (200-day EMA) | Next potential resistance |
| Demand Zone | $0.14 – $0.15 | Possible downside risk |
Leverage and market outlook
Leverage data adds to the complex market picture. The long versus short ratio on leveraged exchanges stands at 0.85, suggesting that short positions are slightly more prevalent. However, the Open Interest weighted funding rate remains in favor of bullish positions, despite significant liquidations on both sides during the last seven days.
ADA is now positioned at a crucial junction, with whales signaling renewed interest while leveraged traders remain cautious.
Looking ahead, analysts and traders are watching whether ADA will initiate a strong recovery or revisit previous lows, with both bulls and short-sellers closely monitoring upcoming price movements.
