Compass Investments

-The latest whale action online demonstrates the continued interest of major market participants in Cardano, even as it lags behind.

In the past six months, addresses traditionally associated with whales and sharks have bought about 819 million ADA, which is equivalent to about $239 million at current quotes.

With this stock build-up, they now own over 25.35 billion ADA tokens, representing 68.44% of the total asset.

This maneuver hints that ADA will be able to recover from its current slump in the medium to long term. ADA is still trading below important technical boundaries that need to be retraced before any meaningful upward movement can be expected.

The accumulation, which The Crypto Basic confirmed occurred among whales holding between 100,000 and 100 million ADA, occurred amidst a general cautious mood. This suggests that while the market was focusing on the decline, the big players in the background were increasing their stakes.

otably, this divergence between price and accumulation often attracts attention, especially in times of market fear, as it emphasizes the bullishness of the biggest players. In the past, large purchases by this group of holders often coincided with cycle lows, when asset valuations seemed least attractive to retail investors.

As a result of this addition, their 보유 is already over 25.35 billion ADA tokens, representing 68.44% of issuance. This is a 1.6% increase from 6 months ago when they had 24.54 billion tokens (66.84% ).

ADA continues to struggle under key resistance zones, trying to reclaim levels that previously served as support. Despite a notable daily rise on Wednesday, the likes of which has not been seen in months, and a gain of over 14% , the overall structure remains fragile.

momentum has not yet turned strongly positive, and attempts to break higher have been repeatedly thwarted near psychological marks. The recent stop near $0.31 on Wednesday confirms this trend. This pattern reflects the prevailing weakness of the coin over the past six months.

However, “whales” are systematically increasing their share of the circulating supply. This move indicates ADA’s confidence in its ability to recover from the downturn in the medium to long term. It also reduces the amount of coins available on the open market, which could lead to a supply squeeze if market conditions improve.

However, accumulation alone is no guarantee of an immediate reversal. The ADA remains below the most important technical levels and must recover before a more serious recovery attempt can be realized.

Cardano is currently quoted at $0.29 and must hold 3-year support at $0.24 to maintain its chances of growth. Losing this 2023 base would risk a sharp decline to $0.17 and the psychological support level of $0.1.

The next important resistance level is at $0.38, which coincides with the target of wave C according to SmellyTaz analysis. However, a successful retest of $0.27 support level and MSS confirmation is needed to reach this zone. Another barrier is located at $0.79, and a confident break of it will return ADA to the zone of active growth.