Cardano Price Forecast: ADA Rebounds as Whale Accumulation and Positive Funding Rates Ignite Bullish Momentum
Whales are loading up on ADA—and the funding rates are screaming bullish. Cardano's native token just snapped back from recent lows, riding a wave of institutional accumulation that's turning heads across crypto markets.
The Accumulation Game
Large holders aren't just dipping toes—they're diving deep. Whale wallets swelled with fresh ADA purchases as prices dipped, signaling strong conviction at these levels. Meanwhile, perpetual swap funding rates flipped positive across major exchanges, creating that sweet spot where spot buying meets derivatives demand.
Market Mechanics in Motion
Positive funding rates force shorts to pay longs—a classic squeeze setup that fuels upward momentum. Combine that with reduced exchange reserves and you've got a textbook supply crunch in the making. Suddenly those 'undervalued' calls from crypto analysts don't sound so crazy.
Because nothing says 'sound investment' like billionaires playing hot potato with digital tokens while retail watches from the sidelines. Cardano's proving once again that in crypto, the big fish eat first—and everyone else gets the crumbs.
Cardano whale wallets buy recent dips
Santiment’s Supply Distribution data indicate a potential recovery horizon for Cardano, as the number of large-wallet holders (whales) is increasing.
The metric indicates that whales holding between 10 million and 100 million ADA tokens (blue line) have accumulated 130 million tokens from Tuesday to Thursday. During the same period, wallets holding between 100,000 and 1 million ADA tokens (red line) and 1 million to 10 million (yellow line) have shed a total of 20 million tokens.
This development suggests that the second cohort of whales may have been affected by the capitulation event. In contrast, the first set of wallets seized the opportunity and accumulated Cardano at a discount.
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Cardano’s Supply Distribution chart. Source: Santiment
Apart from whale accumulation, derivatives data also support a recovery rally for Cardano. Coinglass’s OI-Weighted Funding Rate data shows that the number of traders betting that the price of cardano will slide further is lower than those anticipating a price increase.
The metric has flipped a positive rate and reads 0.0072% on Thursday, indicating that longs are paying shorts. Historically, as shown in the chart below, when the funding rates have flipped from negative to positive, Cardano’s price has rallied sharply, as seen on July 6.
Cardano funding rate chart. Source: Coinglass
Cardano Price Forecast: Rebound in play from key daily support
Cardano price ROSE above its psychological level of $1 on August 14, rallying nearly 20% last week. At the start of this week, on Monday, it declined by 3.88% and extended the losses to retest its key support at $0.84 by Tuesday. However, on Wednesday, it rebounded 4%, finding support around the daily level of $0.84. At the time of writing on Thursday, it continues to recover, trading around $0.88.
If ADA continues its recovery, it could extend the rally toward its key psychological level at $1.
The Relative Strength Index (RSI) on the daily chart is around 56 after rebounding from its neutral level of 50 on Tuesday and points upward, indicating bullish momentum gaining traction. However, the Moving Average Convergence Divergence (MACD) lines converge, indicating indecisiveness among traders.
ADA/USDT daily chart
However, if ADA faces a correction, it could extend the decline toward its daily support level at $0.84.
