- Cardano sees its highest inflows in three months as retail investors buy the dip, but heavy whale selling threatens recovery.
- ADA must hold key support to avoid further downside.
Cardano (ADA) has seen a notable surge in investor activity, signaling renewed optimism after the market’s recent downturn. However, despite the uptick in inflows, selling pressure from large holders is raising doubts about ADA’s short-term rebound potential.
Retail Investors Drive Strong Inflows
According to data from TradingView, Cardano’s Chaikin Money Flow (CMF) indicator recently hit a three-month high, reflecting a sharp increase in capital entering the asset. This spike shows that investors are actively accumulating ADA at lower prices, a sign of renewed market confidence following the recent crash. Historically, such CMF increases often precede a price recovery phase as smaller investors accumulate.
Retail participants appear undeterred by market uncertainty. Their consistent buying suggests belief in ADA’s long-term prospects. However, their optimism faces resistance from large holders — the so-called “whales” — whose trading activity often dictates short-term market direction.
Whales Offload $120 Million in ADA
While retail inflows remain strong, whale wallets holding between 10 million and 100 million ADA have sold roughly 180 million tokens in the past 24 hours — a sum worth more than $120 million. This wave of selling has been enough to suppress ADA’s recovery efforts.
Such whale sell-offs usually indicate cautious sentiment among major investors. Their actions can often act as early warning signals for upcoming corrections. Unless these large holders ease their distribution, ADA’s price recovery could continue to face resistance even with strong retail participation.
Key Levels to Watch
Cardano is currently holding above the $0.66 support zone, but further whale activity could drag the token toward $0.60. On the flip side, if ADA sustains support and attracts renewed buying, it could rise past $0.69 and even test $0.75, invalidating the short-term bearish outlook.
For now, ADA’s near-term trajectory depends on whether the market can absorb whale sell pressure and sustain inflows from smaller investors. A balanced shift in sentiment could mark the beginning of a meaningful rebound for Cardano.
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
