Cardano (ADA): Whale is all in, is it time for a bullish?

Large investors are beginning to show strong support for Cardano (ADA), although current technical signals indicate that the price may face a fall in the short term. The latest data indicates a clear divergence between investor sentiment and the actual value of Cardano in the market.

According to information from TapTools, whales are mainly accumulating Long positions. However, analyzing the ADA/USDT technical chart on the daily timeframe shows a shift from an uptrend to a downtrend, as indicated by the change in price structure.

Although major investors are participating actively, the technical chart still shows a short term downtrend. However, Cardano still has the potential to undergo a slight correction before it can start a new growth cycle.

ADA whales support price increase

Data from Hyperliquid Whale Tracker shows strong participation from whales in Long positions on Cardano. Specifically, over 83% of current whale ADA positions are Long, while there is only about 1.74 million USD in Short positions out of a total of 10.32 million USD. More than 94% of capital is allocated to Long positions, indicating that whales are using leverage to increase their exposure to the upside potential of Cardano.

The focus on these Long positions reflects the confidence of large investors in the long-term prospects of Cardano. This also shows that whales have access to information and internal research that retail investors often do not readily obtain. ADA whales, with their advantage in resources and information, make trades based on expectations of the long-term development of the Cardano ecosystem.

However, it is important to note that if the price of Cardano falls below key support levels, these Long positions may be liquidated, which would accelerate the downtrend in the short term. Therefore, although the bullish trend of Cardano is anticipated, investors need to closely monitor support levels and market influencing factors in the near future.

Warning from technical analysis

Although the sentiment of the ADA whales remains positive, according to technical analyst "Dynamite Trader", Cardano's price action is currently showing not very optimistic signals. The Cardano price has fallen below the bullish channel that provided strong support in April and May 2025, and is currently testing a key price zone between $0.75 and $0.77 — which used to be a strong support level. Now, this price range is being tested and may turn into a resistance level.

If it cannot recover and maintain above $0.75–$0.77, the price of Cardano may continue to fall and test lower support levels, including $0.63. If the downtrend continues strongly, the price could even drop to the $0.55 region.

Although the current short term trend is falling, a red zig-zag pattern on the chart still indicates the potential for recovery if the price stabilizes within the expected support zone. However, accurately determining the timing of recovery is quite difficult, especially when the downward momentum continues to persist without any clear signs of weakening.

Mixed signals from the market

Although many large investors are optimistic about the price increase potential of Cardano in the future, the current technical structure indicates that the price of Cardano needs to build a stronger foundation before it can recover.

Analyst Jesse Olson also pointed out a notable technical incident after a recovery effort of Cardano. Specifically, the upward trend line from the round bottom in April was broken, and although buy signals have appeared in some technical indicators, Cardano still cannot overcome the strong resistance levels in the market.

Although the price of ADA has begun to show strong growth, this upward momentum could not be sustained and has been rejected at higher resistance levels. This is clearly reflected in the MACD indicator, as this indicator has shifted to a downward trend, indicating that the strength of the downward momentum is prevailing.

All these factors indicate that, although the long-term outlook for Cardano remains positive, the current market still needs more time and consolidation to establish a solid foundation for future recovery.

With the increase in leverage in Long positions and the recent weakening of the market, risk management has become particularly important. If the price of Cardano continues to fall and leads to the liquidation of Long positions, the market may witness a sudden change in the structure of positions, further increasing selling pressure and pushing prices down deeper.

In summary, the current situation requires investors to closely monitor and implement appropriate risk management strategies. Although ADA whales are increasing their exposure to the long-term growth potential of Cardano, the current technical charts still indicate that caution is necessary in the short term. Investors should be prepared for potential strong fluctuations and only make decisions based on clearer technical analyses and market signals.

Lilly