Whales stocking ammo, charts tightening. Is ADA braced for explosive lift-off or spectacular head-fake?

• Whales accumulated ADA, signaling strong long-term conviction.

• Short-term activity reflected a bullish outlook, showing the market’s readiness to support a rally.

In the past 24 hours, Cardano [ADA] dropped by 1.69% but has rallied 7.62% over the last month. This recent dip stems from a broader market correction that caused total market capitalization to fall to $3 trillion. Analysis from COINOTAG indicates that ADA has a strong chance of resuming its upward trend in the coming days, as sentiment continues to position the asset for a major price surge.

Whale accumulation and spot trader activity

Whales, who control a significant portion of ADA’s circulating supply, spent the last month accumulating the token. This market cohort purchased 410 million ADA, worth approximately $285 million, during this period.

Source: Santiment

Of course, buying into weakness often signals long-term conviction. This accumulation phase came while prices remained relatively suppressed, hinting at expectations for a future breakout. Similarly, in the spot market, Netflow has remained bullish over the past few months. Exchange Netflow compares buying and selling activity to determine which side of the market is dominant.

Source: CoinGlass

Since March, approximately $416 million worth of ADA has been purchased from the market. Although this accumulation hasn’t led to a sharp upward move yet, it suggests that traders are preparing for a significant rally.

ADA’s rally possibility remains strong

On the chart, ADA is showing choppy movement with no clear pattern to guide precise predictions. Using the Fibonacci retracement line, COINOTAG identified several levels that could restrict or define ADA’s price movement. At the time of writing, Cardano hovered around $0.7034—a resistance level it has tested for ten straight days.

Source: TradingView

To evaluate the likelihood of ADA moving beyond this level, analysts reviewed the Liquidation Heatmap to identify liquidity clusters. Liquidity clusters tend to attract price movement, pulling it toward those zones. At present, multiple liquidity clusters are stacked above ADA’s price, reaching as high as $0.74.

Source: CoinGlass

This development indicates that ADA could overcome the current resistance level and move toward higher price levels on the chart.

Short-term rally possibility stays strong

In the derivatives market, bullish sentiment remains strong as long traders continue opening new positions. Open Interest, which tracks the value of unsettled derivative contracts, has increased, now totaling $778.99 million.

Source: CoinGlass

This growth suggests a rise in active positions and overall market engagement. To understand the directional tilt, analysts looked at Funding Rates. Currently, the Funding Rate stands at 0.0084%, confirming that the majority of positions are long. This reinforced the broader bullish sentiment seen across the board.

In summary, Cardano continues to see consistent accumulation from whales and traders, indicating confidence in its long-term value, but for now needs to build short-term momentum.