Large Cardano holders scoop up 160M ADA as token recovers to $0.211

Key points

• ADA fell to roughly $0.210, having dropped over 7% during the week.
• Since Sunday, investors with 10 million to 100 million ADA have added 160 million tokens to their positions.
• The long-to-short ratio for ADA dropped to 0.74, suggesting shorts outnumber longs in derivatives.

On Friday, Cardano changed hands at $0.210, a drop of more than 7% from the start of the week.

Even with the decline, blockchain data reveals certain big holders are buying ADA.

Yet contradictory cues from derivatives and on-chain metrics indicate traders are unsure if the token will bounce back or keep falling.

Cardano whales stockpile 160 million ADA

According to Santiment's Supply Distribution figures, substantial Cardano investors have been purchasing ADA amid the most recent price downturn.

Addresses with 10 million to 100 million ADA have added roughly 160 million coins since Sunday. This buying suggests certain large holders still see the lower prices as a chance to buy for the long term.

Still, the accumulation hasn't created sufficient demand to turn around ADA's near-term drop.

Purchases by whales during a dip may bolster a bullish long-term view, but they don't assure a quick rebound, especially given the cautious overall market mood.

Derivatives metrics for Cardano offer a mixed picture. CoinGlass reports ADA's long-to-short ratio was 0.90 on Friday, nearing a one-month low.

A ratio under one means shorts outnumber longs, pointing to anticipation of more price drops.

This figure implies bearish traders still control the derivatives space, even with the whale accumulation.

ADA's funding rate gives a somewhat brighter view. CoinGlass indicates the token's open interest-weighted funding rate became positive on Thursday, hitting 0.0013% on Friday.

A positive funding rate implies long position holders pay short holders. This often signals growing bullish bets, even as the long-to-short ratio still favors bears.

The disparity between these two metrics underscores the doubt over Cardano's short-term path.

CryptoQuant's summary backs this cautious stance. While the futures market has seen big whale trades, selling still dominates, and various other indicators are neutral.

Collectively, these metrics suggest hesitation rather than a definitive bullish or bearish move.

Cardano stays above crucial moving averages

On Friday, ADA traded near $0.210, having shed over 7% for the week. Despite the fall, Cardano still sits above its 50-day EMA at $0.190 and 100-day EMA at $0.197.

Staying above these EMAs lends ADA a modestly bullish near-term tilt, though the token remains beneath major resistance above.

Momentum measures are also easing. The RSI has pulled back toward the upper-50 area, and the MACD histogram is shrinking.

These signals imply that the buying force driving Cardano's recent bounce is fading.

ADA's initial key resistance is $0.213, which aligns with the 50% Fibonacci retracement of its recent drop.

A settlement above that point might let ADA aim for the 61.8% Fibonacci level at $0.231, then horizontal resistance at $0.236.

Above that, ADA confronts a major supply zone between $0.245 horizontal resistance and the 200-day EMA at $0.246. A clear move above this region would reinforce the bullish case and possibly open the door for more upside.

To the downside, immediate support is around the 38.2% Fibonacci retracement at $0.195.

That area is strengthened by the 50-day and 100-day EMAs, forming a key support cluster for Cardano bulls. A prolonged break below it could bring the 23.6% Fibonacci level at $0.173 into play.

Should selling pressure ramp up and ADA drop below $0.173, the token might fall back to its more solid structural support near $0.150.

At present, whale buying provides some optimism, but mixed derivatives readings and slowing momentum keep Cardano's near-term recovery in doubt.