- Cardano has climbed more than 15% this week as whale investors continue buying recent price dips.
- Rising futures open interest and positive funding rates suggest traders are becoming increasingly bullish.
- While major resistance levels remain overhead, improving technical signals point to the possibility of further gains.
Cardano is starting to show signs of life.
After several weeks of heavy pressure, ADA has staged a strong recovery, climbing more than 15% this week and reclaiming the $0.16 level. The rebound isn’t happening by chance, either. Behind the scenes, large investors have quietly been accumulating tokens while derivatives traders are becoming noticeably more optimistic.
The trend doesn’t guarantee a sustained rally, but it does suggest confidence is beginning to return.
Whales Continue Buying the Dip
One of the strongest bullish signals comes from Cardano’s largest holders.
According to data from Santiment, whale wallets have steadily accumulated ADA throughout the recent pullback instead of selling into weakness.
Addresses holding between 100,000 and 1 million ADA, along with wallets containing between 1 million and 10 million ADA and those holding up to 100 million tokens, have collectively added around 150 million ADA since June 25.
That’s a sizeable increase.
Large investors often accumulate during periods of uncertainty when prices are relatively depressed, and while whales don’t always get every move right, their buying activity tends to attract attention across the market.
Continued accumulation also reduces the amount of circulating supply available for sale, which can provide additional support if buying demand continues to strengthen.
For now, it appears many of Cardano’s biggest holders are viewing recent weakness as an opportunity rather than a warning sign.
Derivatives Traders Are Becoming More Bullish
Sentiment is improving in the futures market as well.
Cardano’s futures open interest has climbed to roughly $403 million after dropping to around $335 million during the middle of June. Rising open interest generally indicates that fresh capital is entering the market, increasing participation as traders establish new positions.
More importantly, funding rates have also shifted.
According to CoinGlass, ADA’s open interest-weighted funding rate turned positive earlier this week and has continued moving higher.
Positive funding rates mean traders holding long positions are paying those betting against the market, a pattern that typically reflects stronger bullish conviction.
While funding data shouldn’t be viewed in isolation, it does reinforce the improving sentiment already visible through whale accumulation and recovering prices.
Technical Picture Continues to Improve
Cardano’s recent rally has certainly strengthened its short-term outlook, but the broader trend hasn’t completely changed just yet.
ADA is still trading below its 50-day, 100-day, and 200-day Exponential Moving Averages, all of which continue acting as overhead resistance. Those moving averages are clustered between roughly $0.19 and $0.29, creating a fairly dense resistance zone that buyers will eventually need to overcome.
Momentum indicators, however, are becoming more encouraging.
The Relative Strength Index has climbed back toward the neutral 50 level, suggesting selling pressure has eased considerably without pushing the market into overbought territory. At the same time, the MACD remains slightly above zero, indicating bullish momentum is gradually improving.
Several resistance levels now come into focus.
The first sits near the 23.6% Fibonacci retracement around $0.173. Above that, traders will be watching the 50-day EMA near $0.185, followed by the 38.2% Fibonacci level around $0.195.
If ADA manages to clear those barriers, the next major supply zone stretches from roughly $0.213 to $0.245, where multiple Fibonacci retracement levels, long-term moving averages, horizontal resistance, and the broader downtrend line all converge.
Breaking through that cluster would represent a significant improvement in Cardano’s technical structure.
On the downside, recent price action around $0.164 now serves as the first area of support. Should sellers regain control, stronger buying interest may not emerge until the $0.138 region, where previous support and a key Fibonacci level intersect.
For now, Cardano appears to be benefiting from a combination of whale accumulation, improving derivatives sentiment, and strengthening momentum. Whether that translates into a larger breakout will likely depend on buyers’ ability to overcome the heavy resistance waiting just overhead.
