Cardano (ADA) has seen significant whale activity this June, with large holders purchasing 310 million ADA tokens despite recent price volatility. This buying suggests confidence among major investors as the cryptocurrency approaches a critical technical point.
Whale Accumulation Signals Confidence
Data from Santiment shows two groups of Cardano whales increasing their holdings. Whales holding between 100 million and 1 billion ADA raised their total from 3.02 billion to 3.15 billion tokens since June 1. Meanwhile, whales with over 1 billion ADA increased their holdings from 1.79 billion to 1.97 billion tokens in the same period. This accumulation may hint at a potential price recovery if buying momentum continues.
Decline in Derivatives Interest Reflects Caution
Despite whale purchases, Cardano’s derivatives market shows signs of weakening optimism. CoinGlass reports a 7% drop in ADA Open Interest (OI) over the past 24 hours, falling to $852 million. This decline indicates traders are pulling capital from Cardano derivatives, signaling reduced bullish sentiment.
The funding rate, which measures the cost for long positions, has also fallen from 0.0108% to 0.0084%, reflecting less aggressive buying. Additionally, the long/short ratio is below 1 at 0.9681, meaning more traders are betting on price drops. Recent liquidations wiped out $1.49 million in long positions compared to $460,000 in shorts, reinforcing bearish pressure.
Technical Chart Shows Cardano Stuck in Triangle Pattern
Cardano’s price dropped 2.61% on Wednesday after failing to break above a key resistance trendline formed by peaks in March and May. The coin now trades near the lower boundary of a triangle pattern on the daily chart, with support around $0.60. This support line aligns with previous lows from November, April, and June. The triangle pattern suggests that Cardano’s price could soon break out either upward or downward.
Technical indicators provide mixed signals. The MACD indicator recently gave a buy signal but remains flat, hinting this may be a false positive. Meanwhile, the Relative Strength Index (RSI) sits at 46 and is moving downward, indicating growing bearish momentum with room to fall further before becoming oversold.
Summary
- Cardano whales have bought 310 million ADA tokens in June, showing strong hands accumulating despite market uncertainty.
- Derivatives data reveals declining trader interest and bearish sentiment, with falling open interest and more short positions.
- ADA price remains confined within a triangle pattern, facing resistance near $0.73 and support at $0.60.
- Technical indicators warn of potential further downside before any breakout.
- Investors should watch for a decisive move outside the triangle pattern to gauge Cardano’s next trend direction.
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