Cardano Whales Buy 490M ADA as Retail Pulls Back Amid 1% Price Dip
Cardano (ADA) dropped 1% today, following Monday’s 0.88% decline. But whales are buying big time. According to Santiment...
Quick overview
- Cardano (ADA) experienced a 1% drop today, following a previous decline, while whale investors are significantly increasing their holdings.
- Retail investors have reduced their ADA holdings, indicating a shakeout as weaker hands exit amidst short-term volatility.
- The derivatives market shows cautious optimism with a slight increase in Open Interest and funding rates, although long liquidations are notably higher than short liquidations.
- ADA is consolidating within a falling channel, and a break above $0.5939 could signal a potential rally, while bearish momentum persists.
Cardano (ADA) dropped 1% today, following Monday’s 0.88% decline. But whales are buying big time. According to Santiment, holders with over 1 million ADA now hold 23.74 billion ADA, up from 23.25 billion since January 4. Institutional and high net worth investors are getting more confident.
Retail investors (those with less than 100,000 ADA) have reduced their holdings from 6.86 billion to 6.72 billion ADA. This is a classic shakeout. Weaker hands are exiting on short term volatility while smart money is buying the dip.
ADA is stuck in a tight range between today’s high of $0.5939 and Friday’s low of $0.5450. But the charts are hinting at a change.
Derivatives Data Shows Cautious Optimism
Cardano’s derivatives market is showing some bullish signs. Coinglass reports 0.68% increase in Open Interest (OI) to $769.92 million. This is a slow but steady increase in leveraged buying.
The funding rate, which is the difference between futures and spot price, also increased 0.0074%. Buyers are paying a premium to hold longs. But the market is still cautious. Long liquidations were $949.98K in the last 24 hours, almost 3x the $333.06K in short liquidations. Bullish traders are more vulnerable.
Key derivatives signals:
- Open Interest: Up 0.68% to $769.92M
- Funding Rate: Increased by 0.0074%
- Long/Short Ratio: 0.9704 (favoring shorts)
- Long Liquidations: $949.98K
- Short Liquidations: $333.06K
The slightly bearish long/short ratio means traders are hedging against the downside, but some momentum indicators are hinting at a turn around.
Key Levels to Watch
ADA is consolidating in a falling channel. Two descending trendlines from May 23 and June 10 highs and May 19, June 5 and June 23 lows frame the current price action. A break below $0.5450 could test $0.5100, the June low.
But the MACD just gave a bullish signal with the green bars up and the MACD line crossing above the signal line. This could be the start of an uptrend.
The RSI is at 37, near oversold, so bearish momentum is still present but could reverse if buyers come in.
To change the sentiment, ADA needs to break above $0.5939. If it does, it could rally to $0.6186, the June 14 high.
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