Cardano Whales Accumulate ADA While Retail Investors Retreat

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Cardano (ADA) traded slightly lower on Wednesday, dropping less than 1% following a Doji candle in the previous session. The modest decline signals indecision in the market. However, large investors often referred to as whales have taken this as a buying opportunity.

On-chain data from Santiment reveals that smaller investors holding between 10 and 10,000 ADA have sold off 10 million tokens since June 1. Their total holdings now stand at 2.46 billion ADA. Given ADA’s sub-$1 price, these wallets are typically linked to retail participants. This drop signals a clear decline in risk appetite among small investors.

Whales Add 270 Million ADA in June

Meanwhile, whales with over 10 million ADA in their wallets have added 270 million tokens this month alone. Their total holdings climbed to 18.23 billion ADA from 17.96 billion, showing rising confidence in ADA’s long-term potential.

ADA’s derivatives market also reflects growing interest. CoinGlass data shows open interest (OI) rose 1.48% in the last 24 hours to $717.28 million. This uptick indicates capital inflows and increased buying activity. Furthermore, the OI-weighted funding rate sits at a positive 0.0042%, confirming bullish positioning as long traders pay to keep their positions open.

_{Cardano derivatives data. Source: Coinglass}

The long/short ratio of 1.0367 points to a near-neutral market with a slight bias towards long positions. In the past 24 hours, liquidations totaled $296.56K in longs and $303.64K in shorts showing an even split in sentiment.

Technical Indicators Suggest Mixed Outlook

Cardano has retained over 7% gains from Monday, bouncing off a local support trendline formed by the May 18 and June 22 lows. The daily chart shows a falling channel, with resistance near $0.64. A close above this line could push ADA toward the pivot level at $0.7309.

_{Source: Tradingview}

Meanwhile, the MACD indicator suggests reduced selling pressure as the MACD line nears a bullish crossover with its signal line. A surge in green histogram bars from the zero line would confirm a buy signal.

The RSI has rebounded to 38 after dipping into oversold territory, indicating fading selling pressure. However, if ADA closes bearish today, it could revisit the psychological support near $0.50. Large investors continue to show faith in Cardano despite retail investors pulling back. With technicals hinting at a possible breakout and rising interest in the derivatives market, ADA could be gearing up for its next move provided it holds above critical support levels.