Cardano has experienced a tough period, with the failed price recovery and declining market conditions. However, the recent buying behavior of whales and the potential for a price surge suggest a change in momentum.
If Cardano (ADA) can break through the $0.70 level, it could signal the end of the bearish sentiment.
Cardano Whales Are Hopeful
Over the past 72 hours, whales holding between 10 million and 100 million ADA have accumulated over 230 million ADA, valued at over $150 million at current prices. This shift from selling and staying neutral to accumulation indicates a shift in sentiment, with whales optimistic about ADA’s potential for Q2 2025. Their recent activity signals confidence in the altcoin’s recovery despite the recent market struggles.
Whale accumulation is often a bullish indicator as these investors have significant influence over the market. The accumulation is crucial, as it provides the support needed for ADA to break through resistance levels.
The liquidation map for Cardano shows that approximately $15 million in short contracts will expire as soon as ADA rises above the $0.70 level. This presents a key opportunity for the altcoin. Short-sellers may be forced to close their positions, which could lead to a short squeeze and drive the price higher.
Potential liquidation of short positions may create upward pressure, preventing further declines and allowing ADA to recover. The combination of whale accumulation and the looming liquidation of short contracts could provide Cardano with the momentum it needs to break free from its recent downtrend.
Can ADA Price Breach $0.70?
At the time of writing, Cardano’s price is at $0.65, holding above the crucial $0.62 support level. The altcoin has struggled in recent weeks, but the whale-buying activity offers hope for recovery. A breach of the $0.70 barrier could lead to further upward movement.
Should ADA successfully break through $0.70, it could gain the necessary momentum to continue its recovery. Flipping $0.77 into support would provide an additional boost, positioning Cardano to regain recent losses and possibly challenge higher resistance levels.
However, if Cardano fails to breach $0.70, the price may return to the $0.62 support level. Losing this support would invalidate the bullish outlook and send ADA to a lower level of $0.58, extending the ongoing decline.
Disclaimer
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