Cardano Takes a Beating—But These Signals Suggest a Rebound Is Coming

Another week, another crypto bloodbath—and Cardano (ADA) got caught in the crossfire. While it’s sitting among the week’s biggest losers, don’t write it off just yet. Key metrics hint at an impending turnaround, even as traders panic-sell like it’s 2021.

Network activity refuses to die. Despite the price slump, active addresses and development updates keep chugging along—because nothing says ’faith in a project’ like coders working through a bear market. Meanwhile, the staking yield remains juicy enough to tempt long-term holders into staying put.

Let’s be real: the ’smart contract platform’ space is overcrowded, and ADA’s got more competition than a Wall Street intern on adderall. But if the bulls can reclaim critical support levels, this dip might just be another buying opportunity—or another trap for over-leveraged degens. Choose wisely.

Source: TradingView

Whale activity suggests accumulation

AMBCrypto analysis of CryptoQuant’s on-chain data indicated that whales had started to accumulate large buy orders as ADA approached the demand level.

This is a spike in whale activity as the prices test this key demand zone suggests strong investor interest at current prices. It also shows a potential base forming for the reversal.

The demand zone is currently the center stage. The buyers appear to be taking over. ADA has recovered by about 3% over the past 24 hours at press time. This could be an early sign of bullish pressure building.

Whales accumulating in this region generally means medium-term bullishness. But if the demand continues to go up, ADA might attempt a comeback.

However, the long-term overall trend can still remain bullish, especially if Bitcoin and the rest of the market bullishness sustains.

Source: CryptoQuant

Will ADA recover or drop further?

The demand zone is holding for the time being, but with weak support. Failure by bulls to seize the momentum available may see another wave of selling push ADA lower.

On the other hand, sustained buying — particularly by large wallets — may cause an ultimate bounce.

Traders and investors alike will be awaiting a higher low and recapture of the broken trendline. That WOULD confirm a potential reversal. Until then, ADA is in a vulnerable zone where market sentiment can go either way.

With whale orders and recent highs showing early strength, the next couple of days are crucial. If the demand zone holds, ADA could turn from one of the week’s biggest losers and initiate a short-term recovery.