Can the price of Cardano recover as whales buy 2.5 million USD worth of ADA?

Although Cardano (ADA) has been in a deep correction phase since the bottom around $0.30, recent important data indicate it is sending clear accumulation signals, opening up expectations for a new bullish cycle.

Whales return to the market, trading volume explodes

According to a report from Onchain Lens, whales have started buying ADA and increasing holdings in other major coins like Ethereum (ETH). This move occurred after a whale wallet transferred 7.9 million USDC to the Hyperliquid exchange.

Notably, two wallets belonging to the same individual executed more than 10 buy orders of ADA at an average price of $0.38, totaling 6.46 million ADA, with an approximate value of $2.5 million. This activity indicates smart money actively accumulating, signaling the market may be entering an upward phase.

Source: Onchain Lens As a result, ADA’s daily trading volume surged, exceeding $600 million at the time of recording. However, the ADA price only increased slightly by less than 1%, reflecting that accumulation is still ongoing.

Why is this the right time to accumulate ADA?

In-depth data analysis shows this is an ideal time to accumulate ADA, perfectly aligned with whale activity. The short-term bubble risk index for ADA is at 0.659 – a negative signal, indicating the coin is undervalued.

According to market law, when an asset is oversold, it often presents a good buying opportunity. Historical data also proves that ADA’s price tends to recover strongly after deep declines like the current one.

Source: IntoTheCryptoVerse Especially, the decline from ADA’s all-time high (ATH) has reached 86%, reinforcing the oversold threshold – a common reversal indicator across many financial markets.

All these data points suggest this is a favorable time to accumulate ADA, with expectations of price growth in the near future. However, does the current price movement truly support this view?

ADA price is testing a key support level

Currently, ADA is testing a strong support zone at $0.38 and has maintained a price above this level. Previously, this was a resistance zone and now coincides with whale buy-in levels.

Technical charts show ADA approaching the next resistance zone at $0.43, supported by active whale buying and improving market sentiment.

Maintaining the price above the $0.38 support zone further confirms that accumulation is strongly underway. However, to break through the $0.43 resistance, buying pressure needs to continue. If successful, the market structure will shift to a clear uptrend.

Source: TradingView Conversely, if ADA loses the $0.38 support, a sell-off is likely, which could undermine the current positive outlook.

Conclusion

ADA is showing a strong accumulation scenario, opening opportunities for a new bullish cycle. However, investors should wait for additional confirmation signals from the broader market to strengthen confidence in this trend. Market consensus will be a key factor helping ADA break out in the near future.