Following one of the largest liquidation events on record in the crypto market, the Cardano price has retraced to the $0.2775 level. This zone, identified by analyst Harvey Hunter as a crucial turning point, has historically served as a launchpad for significant bullish movements since late 2023, marking a proving ground for the asset’s resilience.
Despite the caution prevailing among retail investors, order flow data suggests that “smart money” is actively accumulating ADA. Large buy orders detected by CryptoQuant indicate that whales are taking advantage of the dip, viewing the current retracement as a strategic buying opportunity rather than a sign of the asset’s definitive structural failure or capitulation.
Technical indicators point to seller exhaustion and potential reversal
The current chart setup shows that the asset has remained trapped within a descending channel for over a year, creating a volatility compression that typically precedes breakouts. However, the Relative Strength Index (RSI) on the weekly chart has touched the oversold threshold of 30, a level that has historically marked seller exhaustion and the start of durable recoveries.
On the other hand, the MACD indicator tells a similar story, showing a convergence toward a potential “golden cross” above the signal line. Furthermore, the market structure suggests that if ADA manages to flip the key resistance at $0.50, it could open the door toward cycle highs, located near the psychological $1.35 mark in the medium term.
Thus, a confirmed breakout from the descending channel would represent a structural shift of great magnitude for the blockchain project. Should macroeconomic conditions remain favorable, some analysts project that this initial move could be just the first leg of a rally, with long-term targets aiming for a push toward the $2 level.
What impact does whale activity have on the ADA recovery?
Asset accumulation by large holders is often a reliable precursor to shifts in the Cardano price trend. By absorbing selling pressure during massive liquidation events, these institutional players establish a firm floor for the valuation, reducing the circulating supply available on exchanges and setting the stage for an eventual supply shock.
Additionally, while the Cardano ecosystem strengthens, new high-beta opportunities are emerging in adjacent sectors like meme coins. Projects such as Maxi Doge ($MAXI) are capturing trader attention, offering high-growth alternatives that complement diversified portfolios, especially after raising nearly $4.6 million in its presale phase while offering attractive staking rewards.
However, the primary focus for long-term investors remains on Cardano’s ability to validate its current demand zone effectively. Therefore, the weekly close will be decisive in confirming whether this retest of historic support will trigger another explosive rally, thus consolidating predictions that place the asset on a recovery trajectory toward significantly higher price levels.
In conclusion, technical and on-chain data suggest that the market is flushing out “weak hands” through forced liquidations, creating a high-conviction entry point for the bulls. It is expected that the Cardano price will react strongly if the network’s fundamentals continue to improve, once again attracting the interest of institutional investors seeking exposure to proven layer-1 protocols.
