- Cardano (ADA) dropped over 10% this week, breaking a key trendline and turning market sentiment bearish.
- However, increased whale accumulation at a key demand zone has sparked a 3% rebound, hinting at a possible short-term recovery.
Cardano (ADA) just had one of its worst weeks in recent memory, plunging over 10% and ranking among the market’s top losers. This steep decline came after a critical market structure shift, where ADA broke below a long-standing uptrend line it had maintained since early April. The break not only signaled technical weakness but also flipped trader sentiment from bullish to bearish.
The breach triggered widespread selling pressure, pushing ADA into a key demand zone. But what looked like a continued freefall has suddenly sparked hope — thanks to a major shift in on-chain activity.
Whales Dive In at the Right Moment
On-chain data from CryptoQuant shows that large ADA holders — often referred to as whales — have been actively accumulating at this new price level. These massive buy orders began flooding in just as ADA approached the demand zone, suggesting that big-money investors see value at current prices.
In the last 24 hours alone, ADA has recovered nearly 3%, hinting that bullish pressure might be building. Historically, when whales accumulate at support zones, it often precedes a price rebound. This surge in interest suggests that ADA could be forming a short-term base for a potential reversal.
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Is the Worst Over for ADA?
While ADA’s recent bounce is encouraging, the bulls still have work to do. The demand zone is holding — but barely. If buyers fail to capitalize on this moment, ADA could see another leg down. On the flip side, if whale buying continues and ADA reclaims the broken trendline, a short-term recovery rally could be underway.
For now, all eyes are on the demand zone. With market sentiment teetering and Bitcoin’s trajectory likely to influence broader trends, ADA’s next move could define its near-term future.
One thing’s for sure: with whale activity surging and price action stabilizing, Cardano may not stay among the week’s biggest losers for long.