Whales start buying as Cardano shows classic “oversold” signals — is accumulation beginning? Cardano (ADA) appears to be attracting informed buyers after a prolonged drawdown, with on-chain data and price action pointing to renewed accumulation. What happened - Onchain Lens flagged renewed whale activity: following a $7.9 million USDC deposit to the Hyperliquid exchange, two wallets, believed to belong to the same whale, placed more than 10 buy orders for ADA at an average price of $0.38. The total purchase was about 6.46 million ADA (~$2.5 million). - That buying coincided with a spike in daily trading volume, which topped $600 million at the time of reporting, even though ADA’s price was up less than 1% on the day. Why it matters - The whale purchases and higher volume suggest “informed money” is accumulating, a common precursor to larger moves if buying sustains. - A short-term bubble-risk metric registered at 0.659 — a bearish reading in the indicator’s terms — which the report interprets as a sign ADA is currently undervalued and in oversold territory. Historically, similarly bearish readings have preceded price bounces. - Cardano remains deeply down from its all-time high, with an 86% drawdown — another classic oversold marker that can precede reversals in risk assets. Technical picture - ADA was holding right at the $0.38 area, a level that previously acted as resistance and now lines up with the whale buy price. That alignment strengthens $0.38 as an important support zone. - The next meaningful resistance sits around $0.43. Continued buying and improving market sentiment could push price toward that level; a close above $0.43 would shift short-term structure more bullishly. - Conversely, a breakdown below $0.38 would likely flush weak hands and invalidate the current accumulation thesis. Bottom line On-chain whale buying, elevated volume, an oversold technical backdrop and a large drawdown from the ATH combine to make a compelling accumulation narrative for ADA — but it’s not confirmed yet. Traders will want to see sustained buying and broader market strength before calling a trend reversal. A firm hold above $0.38 and a successful breach of $0.43 would be key confirmations; failure to hold $0.38 would undercut the case. Sources: Onchain Lens, IntoTheCryptoVerse, TradingView, AMBCrypto. This article is informational and not investment advice — always do your own research before trading. Read more AI-generated news on: undefined/news