Whale sold 4 million ADA, but technical signals still support the target of 1 USD

In the past week, whales have sold over 4 million ADA, sparking new debates about the price action of Cardano (ADA), as cautious retail investors begin to return to the market.

After a week of strong distribution, on-chain data shows that large holders are gradually slowing down their selling pace. This slowdown is accompanied by smaller wallets starting to accumulate more, signaling that retail investor money is absorbing the excess supply.

This move reflects a subtle shift in market sentiment, from a state of fear to cautious optimism. Historically, such periods often pave the way for recovery cycles, as the retreat of whales creates attractive entry points for retail investors.

If this trend continues, Cardano may be entering a new accumulation cycle — a precursor to a broader recovery of ADA's price.

Taker Buy Dominance surged

The Taker Buy Dominance index has surged strongly in the past week, indicating that active buying is gradually gaining control over the derivatives market.

This development reflects the growing confidence among leverage traders, who are betting on the potential for Cardano (ADA) to continue its recovery.

Historical data shows that when this index remains high, the market often enters a short-term uptrend.

According to data from CoinGlass, the liquidation volume of short positions has surged to 270,000 USD, while the long side only recorded 72,000 USD — a sign that the bears are being forced out of the market.

This imbalance is creating a clear momentum for the recovery of ADA, while marking an important shift in sentiment as traders begin to lean towards a short-term bullish scenario.

Source: CryptoQuant## The growth of open contracts indicates that speculative participation is increasing.

The open contract (OI) has increased by 3.3%, reaching 682.66 million USD at the time of writing – a sign that traders are reopening positions, expecting the price action to continue upward.

Notably, the increase in OI coincides with the improvement of the Taker Buy Dominance index, indicating that risk appetite is returning in sync across the market.

However, if the price cannot break through the important resistance level of 0.69 USD, this accumulation trend may become a catalyst for stronger fluctuations in the short term.

However, the fact that positive signals from the derivatives market are still being maintained shows that confidence in the recovery trend of ADA is increasingly being strengthened.

Source: CoinGlass## Cardano price recovers!

The combination of the accumulation activity of retail investors, the cooling selling trend of whales, along with improving technical signals, is increasing the likelihood that ADA has established a short-term bottom.

Retail investors are gradually returning to the market, actively buying as the selling pressure from large holders weakens. This shift in the supply-demand balance is often a sign of the beginning of bullish reversal phases, especially when trading volume starts to increase near important support levels.

Additionally, the RSI indicator is currently hovering around the oversold threshold, reinforcing the view that the bears are gradually losing momentum, allowing the bulls to regain control. History shows that similar setups often mark the beginning of sustainable recovery cycles – where the accumulation phase plays a foundational role for a new price expansion.

If ADA can hold above the 0.50 USD mark, this asset could attract additional inflows from institutions, thereby strengthening its medium-term bullish outlook. Conversely, a break below this level would significantly weaken the current recovery structure.

Source: TradingViewAt the moment, market demand is gradually improving, along with positive technical signals indicating that Cardano may be preparing to enter a stronger upward trend. Although selling activity from whales is still present, the recovery from a solid support level, along with increasing OI and higher Taker Buy Dominance, all reflect a positive shift in market sentiment.

The convergence of these signals suggests that ADA is likely forming a foundation for a sustainable recovery. However, to confirm a clearer reversal trend, the price needs to close steadily above the 0.69 USD mark — a key factor that could pave the way for the next upward momentum towards the 1.00 USD range.

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