This past weekend, Cardano (ADA) broke the lows set in the first week of February. Since this breach, the price has rebounded nearly 6% from the local lows of $0.234 and is once again trading in a two-month range.
Recently AMBCrypto reported that Cardano whales accumulated 220 million ADA in a week. Their total holdings in major wallets were measured at 13.84 billion, reflecting a deliberate absorption.
Moreover, the top traders on Binance have maintained their bias for a long time despite the recent volatility. Did this mean that the ADA price drop over the weekend was a liquidity increase?
Examining the long-term trend of Cardano
Cardano Lower lows and lower highs have been forming since October 2025. These are characteristic of a downtrend and the Directional Movement Index agrees. However, this indicator has remained unstable for the last three weeks.
The range formation between $0.245 and $0.30 since February has led to the DMI not showing a strong trend. At the same time, OBV was also in a range that showed a balance between aggressive buyers and sellers.
The moving averages got closer but no upward trend was seen. This was consistent with gap formation; There was no significant momentum and a price move above the moving averages could quickly be reversed.
Investors’ call to action: Stay bearish
Despite whale accumulationThe swing trader trend needs to remain bearish. This was due to the price structure on the 4-hour chart. Moreover, the higher time frame also showed the prevalence of sellers.
The $0.233 and $0.278 levels (orange dotted) marked the swing points that investors should pay attention to in this time frame. A bounce to $0.26-0.27 will present a selling opportunity targeting $0.233 lows.
The trend could remain bearish until the $0.278 swing level is breached. The next southern targets below $0.233 will be $0.222 and $0.205, and such a decline will confirm the breakout of this range.
Final Summary
- Cardano fell below the range lows in February but quickly bounced back into that range.
- This being the case, the bears have the upper hand and more negativity is likely to occur for ADA.
