ADA drops 71% in six months, but whales buy $213 million; $0.30 becomes the key level for Cardano price reversal

ADA-4.58%

February 25 News: Cardano (ADA) remains in a weak consolidation zone after months of decline, currently trading around $0.275. Over the past 24 hours, it has slightly decreased by about 2.7%, hovering in the weekly range of $0.2581 to $0.3004 in the middle. Despite a roughly 6.5% rebound in the past week, it has fallen 25% over the last 30 days, with a six-month total decline of up to 71%, indicating that the medium- to long-term trend remains under pressure.

On-chain data platform Santiment revealed that large whales and major addresses holding between 100,000 and 100 million ADA have accumulated approximately 819.4 million ADA over the past six months, worth about $213 million at current prices. Notably, this accumulation occurred during ADA’s decline from $0.90 to $0.26, reflecting that well-funded participants are continuing to buy at low levels rather than panic selling.

Derivatives data also shows market sentiment cooling. The 24-hour trading volume has dropped to about $339 million, with open interest decreasing slightly. This contraction in trading activity typically indicates reduced leverage and a move toward consolidation rather than accelerated decline. The price has repeatedly found support in the $0.25 to $0.26 range, suggesting strong demand in this zone.

On the ecosystem front, long-term signals are emerging. Progress on the Midnight privacy sidechain, increased institutional interest, and expanded access to asset collateralization and financial products all help enhance ADA’s practical use cases in decentralized finance and privacy applications, improving its long-term liquidity foundation.

Technically, ADA remains below the 20-day and 50-day moving averages, with the $0.27 to $0.28 zone acting as a dynamic resistance area. The Bollinger Bands are narrowing, indicating volatility compression nearing a critical point. The RSI has rebounded from oversold levels to the 30-40 range, showing some easing of selling pressure but not yet a strong bullish momentum. If volume increases and the price breaks above the $0.30 resistance, it could target $0.32 in the short term; conversely, if support at $0.25 fails, the price may test the psychological level of $0.20, prompting the market to reassess Cardano’s reversal timing.

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