- Cardano’s sentiment and technicals aligned as outflows signal investor confidence.
- Retail engagement rises while whales reduce exposure, forming a bullish structural base.
Cardano [ADA] sentiment has flipped decisively bullish, with crowd and smart money indicators printing healthy scores of 1.24 and 1.99, respectively.
At press time, ADA traded at $0.6846, down 1.83% in 24 hours. However, this minor dip came amid strong structural signs suggesting growing confidence and strategic positioning for a possible move higher.
Despite the minor pullback, the alignment between rising sentiment and improving technical structure suggests that market participants may be positioning for a stronger upside move.
Technical structure aligns with bullish momentum
ADA reclaimed both its 9-day and 21-day Moving Averages (MA), sitting at $0.6434 and $0.6301, respectively, at press time.
These levels serve as dynamic support, laying the groundwork for a potential price recovery.
The Parabolic SAR has flipped below the price at $0.6153, signaling continued bullish momentum. However, ADA must surpass the $0.7626 resistance level, which has limited multiple bullish attempts in recent months.
A decisive breakout above this zone, especially with strong trading volume, could pave the way toward $1.20—a key psychological level likely to drive further interest among traders.
Source: TradingView
ADA on-chain signals support the accumulation narrative
Meanwhile, on-chain exchange activity further strengthens the bullish outlook.
At the time of writing, spot exchange flows showed that $16.44 million worth of ADA exited trading platforms, compared to $13.41 million in inflows.
This net withdrawal indicates that holders are moving their tokens into long-term storage or DeFi protocols, a behavior commonly associated with accumulation rather than distribution.
Source: CoinGlass
Meanwhile, the Total Value Locked (TVL) in Cardano-based DeFi stood at $395.43 million, dipping just 2% in 24 hours.
While this decline may reflect minor repositioning, it does not align with panic-driven selling, especially when considered alongside consistent outflows and rising sentiment.
Transaction activity sees retail rise as whales retreat
Network activity paints a mixed picture.
Transactions below the $1 threshold have surged by 250%, suggesting that grassroots participation is on the rise. However, the higher-value transaction bands—ranging from $100k to $10 million—have declined by over 80%.
That said, it appears retail and dApp-level users are stepping in, likely laying the groundwork for a broader demand wave. If sentiment remains elevated, whales may re-enter, propelling further upside.
Source: IntoTheBlock
Investor composition reveals growing retail conviction
In fact, ownership distribution further supports the narrative of shifting market dynamics.
Over the last thirty days, whale holdings have dropped by 1.68%, while long-term investor participation has increased by 1.60%. Retail addresses also saw a 0.72% uptick.
This redistribution suggests that ADA is transitioning into the hands of more committed and smaller-scale investors.
Although whales appear to be reducing exposure, the strengthening base formed by investors and retail participants may serve as a solid launchpad for the next leg upward.
Source: IntoTheBlock
ADA is likely to reclaim $0.70 and test higher levels
ADA appears poised to reclaim the $0.70 mark soon, driven by bullish sentiment, solid technicals, exchange outflows, and retail momentum.
The current market structure supports a move toward $0.70, with a potential breakout past $0.7626 if momentum holds steady.
Cardano seems positioned to recover key levels and may begin a broader upward trend in the near term.
