Key Takeaways
Whales adding 150M ADA is a sign of confidence, while a stock-to-flow surge could allude to tightening supply. However, with 77% of traders long, ADA must reclaim $0.93 to avoid a squeeze.
Over the last two weeks, Cardano [ADA] whales have accumulated nearly 150 million ADA – A sign of growing confidence in the altcoin’s future. The timing here is crucial, especially since this surge in demand coincided with retail traders becoming cautious.
At the time of writing, the crypto was valued at $0.85, with ADA consolidating near its critical support zones. Such whale activity often precedes significant market shifts. Hence, many traders may now be anticipating a stronger bullish push on the price charts.
However, the key question now is whether these large inflows can offset broader market uncertainty and fuel a breakout above crucial resistance levels.
Can Cardano sustain momentum within its rising channel?
Cardano has been consolidating inside a steady ascending channel, establishing $0.78 as a major support while $0.93 emerged as the next test. In fact, the Fibonacci retracement zones revealed $0.95 and $1.02 as critical upside targets. On the contrary, the MACD indicator hinted at fading bullish momentum and the risk of short-term pullbacks.
And yet, ADA’s ability to maintain higher lows within the channel could be a sign of resilience too.
Traders are closely watching if Cardano can hold this structure. Especially since losing the channel could trigger a deeper retracement towards the $0.70 support level.
Source: TradingView
Does the stock-to-flow surge signal growing scarcity?
Cardano’s stock-to-flow ratio spiked sharply too, with the same recently climbing above 400 – Its highest level in months. Here, it’s worth pointing out that this ratio measures circulating supply relative to issuance, and rising values often signal tightening supply.
Such conditions historically support higher valuations when demand is steady.
However, the market must confirm that accumulation translates into sustained buying pressure. Without follow-through demand, even a strong scarcity signal may fail to drive the price significantly higher.
Therefore, this stock-to-flow uptick will be a critical indicator of whether ADA can sustain its long-term bullish narrative.
Are leveraged traders setting up ADA for a squeeze?
According to derivatives data from Binance, long accounts seemed dominant with 77% of traders betting on price gains, while only 23% were short. The long-to-short ratio stood at 3.40, highlighting overwhelming bullish positioning too.
Such skewed sentiment often increases the risk of sudden liquidations, especially if support levels fail. However, this also means strong conviction persists among traders since they have been expecting higher prices.
ADA’s immediate direction depends on whether bullish momentum holds above $0.85, as a slip below could trigger a chain of liquidations.
Cardano’s outlook might be increasingly bullish as whales accumulate heavily, scarcity signals strengthen, and long traders dominate.
However, sustainability depends on ADA holding above $0.85 and reclaiming the resistance at $0.93. If buyers maintain this structure, Cardano will have the momentum to push towards $1.02 and beyond.
