Cardano [ADA] is returning to levels not seen in nearly a month! This is due to activity from larger traders; retail hasn’t quite returned.
Can the whales keep ADA’s recovery going?
ADA reaches a one- month high!
Cardano’s ADA has climbed back to around $0.195; this is its highest level since the 4th of July. What’s peculiar is that the network still has about 7,070 fewer non-empty wallets than it did two months ago.
Cardano’s ecosystem has continued to advance despite subdued wallet growth. Cardano has continued to make progress across areas such as Leios, Hydra, Mithril, Pyth integration, and Catalyst funding. Even if user activity has not fully recovered yet, the network continues to build on its long-term development roadmap.
Whale-sized orders are helping ADA recover
The rise in ADA’s price could also be due to larger spot orders. CryptoQuant’s average order-size data showed “big whale orders” at the time of writing.
Current order-flow data suggests larger investors are playing a greater role in the recovery than retail participants. Stronger order sizes can help absorb available supply and support price moves; especially when smaller holders seem reticent.
Whale activity alone does not guarantee a lasting rally; however, they do remain an important force.
But that’s not all.
Open interest adds pace….and risk
Aggregated OI went up to around $264 million, while the average funding rate was positive at 0.0057. Traders are still willing to hold leveraged long positions with rising price.
While this makes a bullish case, it also increases liquidation risk. For this rally to continue, spot demand and a wallet activity recovery will need to confirm what derivatives traders are already pricing in.
Final Summary
- ADA climbed to its highest level in almost a month as larger spot orders coincided with the recovery.
- Retail participation remains subdued, leaving the sustainability of the rally dependent on broader market demand.
