Cardano Whales Accumulate 200M Tokens During Dip, Fueling Bullish Hopes

Cardano's (ADA) price recently dipped below key resistance levels, prompting substantial whale accumulation. Whale wallets holding between 1 million and 100 million ADA have accumulated more than 200 million tokens in the past three weeks. This activity is seen as a sign of long-term conviction, as large holders often accumulate during market corrections.

The accumulation has occurred amid broader retail weakness and reduced open interest. CoinGlass data shows ADA Open Interest has declined to $826.15 million, down from $844 million in early January. This drop reflects reduced speculative trading and capital outflows.

At the same time, institutional interest in ADA appears to be increasing. Germany's DZ Bank recently received MiCAR approval, allowing regulated European banks to offer Cardano exposure to institutional clients. This development may open new avenues for capital inflows into ADA, especially with the anticipated approval of a Cardano spot ETF (GADA) in early 2026.

Why Did This Happen?

Whales typically accumulate assets during periods of market fear and weak retail sentiment. Smaller investors often sell during price dips, while larger investors see buying opportunities. This pattern suggests a belief in future price appreciation and growing institutional confidence in the Cardano ecosystem.

Recent on-chain activity also indicates that whale accumulation is being used for staking. These large holders are transferring assets to personal wallets, reducing the circulating supply. A decrease in circulating supply can lead to increased scarcity and potential upward price movements.

How Did Markets Respond?

Market sentiment remains cautious, with ADA trading near key support levels. The RSI stands at 52, and the MACD histogram is contracting, suggesting fading bullish momentum. However, ADA remains above the 100 and 50-day EMA, indicating short-term support around $0.39.

ADA's social dominance has also declined to 0.037%, the lowest since early December. This drop suggests reduced speculative interest and weaker demand, which could delay a breakout above $0.43.

Funding rates for ADA have turned negative, with shorts paying longs. This is typically a bearish signal, indicating that traders are less confident in ADA's ability to rise in the near term.

What Are Analysts Watching Next?

Analysts are closely watching the key support level at $0.38. A break below this level could extend the correction to $0.32, the December 31 low. Conversely, a hold above $0.38 suggests a potential recovery toward the 50-day EMA at $0.41.

Institutional adoption and upcoming CME Group futures are also under scrutiny. If confirmed, CME's ADA futures could enhance market depth and provide institutional players with hedging tools. This might reduce price volatility and increase liquidity, similar to the impact seen when CME launched Bitcoin and Ethereum futures.

On-chain data shows a positive divergence in buying pressure, with whale accumulation outpacing retail outflows. This divergence often precedes upward price reversals, suggesting that the current dip could be a buying opportunity.

The broader cryptocurrency market remains volatile, with ADA's price closely tied to macroeconomic trends. A softer-than-expected core inflation report recently boosted ADA's price above $0.40, but this momentum has yet to translate into a sustained breakout.

Traders are also monitoring the Grayscale Smart Contract Fund, which has increased ADA's holdings. This indicates that traditional capital may be entering the market, potentially supporting price stability as longer-term investors reduce sharp pullbacks.

In the short term, ADA's price action will depend on whether it can maintain support above $0.38 and whether on-chain accumulation continues. A sustained move above $0.41 could reinforce a bullish bias and increase the chances of a deeper recovery.