Cardano Price Recovers With 9% Gains In 24 Hours, What Next?

Cardano (ADA) price experienced a sharp 7% decline a couple of days back, but has now emerged with nearly 9% gains in 24 hours’ span.

At the time of writing Cardano was trading at $1. In the recent days, Cardano has witnessed significant whale activity.

In fact, Thursday’s price decline had coincided with a sell-off by whales, who had offloaded over 70 million ADA tokens within 48 hours.

And the selling pressure had added to the downward momentum and intensified market uncertainty for ADA.

Market analyst Ali Martinez, highlighted this whale activity in a recent post on X. He noted that large investors, holding between 100 million and 1 billion ADA tokens, reduced their holdings significantly.

The market reaction to this activity has been reflected in ADA’s price performance, testing key support levels and raising concerns among traders.

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Whale Activity and Cardano Price Trends

In the recent past, patterns of whale activity have been seen to be well associated with the changes in ADA prices.

Whale holdings, shown in the chart by a red shaded area, have been gradually decreasing since December 19 with a sharp decline on January 7, 2025.

This has led to reduced selling pressure especially on ADA since there are fewer large holders of the asset.

The price of Cardano seemed to be stable in late December 2024 even as the number of whales was gradually decreasing.

Nonetheless, ADA holdings reduced drastically on 7th January at the same time price plunged which has dragged ADA to its present value of $0.9146.

This means that the large scale whale sell off may be depressing the Cardano price by flooding the market with ADA tokens.

The cryptocurrency is now moving towards its support area of $0.90 – $0.92, which could become a consolidation territory if bears stop pushing the price down.

Nonetheless, more outflows from whales may worsen the situation, while a change of course from whales may help the situation.

Market Metrics and Performance

In the last 24 hours, Cardano price has climbed from $0.91 to $1. The market capitalization has gone up over 8% to $35.15 billion.

It has also seen its trading volume rise by 13.50% in the last 24 hours, with the 24h volume at $1.28 billion.

While the initial liquidity issue kept ADA from being able to climb back up, keeping it below important support levels. However a major development has seen a the coin back up.

Cardano Foundation CEO, Frederik Gregaard, recently posted on X about Cardano’s partnership with famed football club FC Barcelona.

This seems to have reflected positively on Cardano’s price. Having said that, looking at Cardano’s overall performance in the last seven days, there has been a drop of 4.85% in its value.

ADA tokens in circulation are 35.15 billion out of the total 45 billion tokens. The high circulation supply with the low demand may be a contributing factor for this price drop.

Open Interest Decline Reflects Reduced Speculative Activity

The total open interest for Cardano is at present $565.7 million where perpetual contracts contribute to $562.7 million and futures contracts contribute to $3.1 million.

The last 24 hours have seen open interest increase by 10.22%, with perpetual contracts having increased by 10.28%.

The increase in open interest is an indication of an increase in the level of speculative trading by traders.

Bybit alone has the largest share of ADA open interest at $273.35 million while Binance follows closely at $266.88 million.

Other exchanges like OKX and Huobi have a much lower open interest, which means less trading volume.

Cardano price seems to be emerging strong despite short-term challenges and analysts remain optimistic about its market performance in the coming days.

There are multiple factors likely to push Cardano’s growth including its privacy-focused sidechain, Midnight, and the possibility of ETF approval this year.