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Cardano [ADA] demonstrated resilience after a sharp market correction last week, as large investors took advantage of lower prices to accumulate the token. While traders remain cautious, on-chain and derivatives data point to early signs of stabilization and a potential rebound.
ADA Stabilizes After Sharp Losses
Between October 10 and 11, Cardano faced intense selling pressure during a broader crypto market downturn, with prices dropping as much as 20%. A record $19 billion in liquidations swept across the market, pushing ADA to a low near $0.62.
Despite this, Cardano began to recover as large holders, often referred to as whales, stepped in to buy the dip. The price stabilized around $0.645, hinting at tentative recovery momentum.
Short-term technical indicators showed early signs of accumulation. The Relative Strength Index (RSI) hovered around 45, while the Chaikin Money Flow (CMF) moved into positive territory, reflecting a subtle buying trend among major investors.
Whales Accumulate Discounted ADA
Data from Santiment revealed that wallets holding between 10 million and 100 million ADA increased sharply following the sell-off. The number of such wallets rose from approximately 466 to 472 between October 10 and 11, signaling renewed confidence among major investors.
Historically, accumulation by large holders often supports price stability during volatile periods. The uptick in whale activity suggests that long-term investors view the recent dip as an opportunity to strengthen their positions, providing a buffer against further short-term losses.
Derivatives Data Reflect Cautious Optimism
The derivatives market echoed the cautious recovery seen in spot markets. Open Interest (OI) plunged sharply during the liquidation event, reflecting widespread unwinding of leveraged positions. By October 11, OI had stabilized near 284 million, indicating that traders were slowly re-entering positions.
Funding rates also turned positive at 0.1544, signaling renewed long exposure and improving trader sentiment. This shift suggests that both derivatives and on-chain data are aligning to support a potential short-term recovery.
What This Means for ADA Investors
While Cardano shows early signs of bouncing back, traders are advised to remain cautious. Short-term charts indicate that momentum is not yet fully recovered, and additional volatility is possible as markets digest the recent sell-off.
However, the involvement of whales provides a degree of stability. Their accumulation behavior indicates confidence in Cardano’s long-term potential and helps absorb market shocks, offering hope for a gradual price rebound.
Looking Ahead
Cardano’s next movement will likely depend on broader market trends and Bitcoin’s performance. If major cryptocurrencies stabilize, ADA could continue its recovery toward previous resistance levels near $0.68–$0.70.
For now, the combination of whale buying, positive funding rates, and improving on-chain metrics points to cautious optimism. Investors and traders may find opportunities for measured entries while monitoring key support levels and overall market conditions.
