Cardano (ADA) jumped more than 12% in a single day, breaking short-term resistance and once again attracting the attention of whales and institutional funds alike. The surge coincides with continued accumulation by whales and mechanical buying of index trackers, signaling a potential turnaround after months of consolidation.

A combination of rising trading activity, renewed interest in derivatives and steady accumulation by major holders has put Cardano back on traders’ radars. While questions remain about the chain’s long-term performance, recent price behavior suggests that market participants are ready for significant long-term moves.

ADA's price trends to the downside on the daily chart. Source: ADAUSD on Tradingview

Institutional allocation and whale accumulation support Cardano’s momentum

Chain data shows this is huge Cardano holderscommonly referred to as sharks and whales, have raised approximately 819 million ADA in the last six months. These purchases occurred even as prices dropped significantly, indicating that influential investors viewed lower levels as an opportunity to build positions.

Institutional involvement has also increased. Asset manager Grayscale raised Cardano’s stake in its Smart Contract Platform Select Capped Index fund to more than 20%, making ADA its third-largest holding in the product.

While the adjustments are partly due to the index tracking mechanism, the growing allocation underscores Cardano’s continued importance among the major intelligent contract platforms.

This accumulation trend contrasts with retail sentiment during the downturn and suggests long-term confidence despite continued competition from rival blockchain ecosystems. Analysts often interpret continued buying during periods of price weakness as a signal that larger investors are getting ahead of future catalysts.

Technical Breakdown Drives ADA Price Rise

ADA saw a 12% daily gain, rising from around $0.26 to over $0.29, while trading volume increased to almost 4 times its average level. The move followed a break above key short-term technical levels following weeks of consolidation.

Dynamics indicators indicate an ongoing phase of recovery. The RSI remains below the overbought area, leaving room for further gains, while trend strength readings point to a developing directional move.

The growing interest in open futures, which has increased by almost 30% in one day, suggests fresh capital entering the market rather than simply covering brief positions.

Key levels are currently located near $0.31, which provides immediate support, while resistance appears near $0.34 and the 50-day moving average. A sustained hold above these zones can reinforce bullish momentum, while a rejection can trigger consolidation.

Ecosystem development adds an underlying narrative

Outside of the price action, Cardano founder Charles Hoskinson recently emphasized that the network remains competitive, citing its upcoming Midnight privacy project as evidence of continued growth. The initiative has already attracted its first partnerships and aims to expand applications in line with enterprise and regulatory requirements.

However, mixed fundamentals remain. While derivatives activity and investor accumulation are increasing, the share of decentralized finance and the total value locked on the network remain below previous highs, reflecting the uneven development of the ecosystem.

For now, Cardano’s rally represents a noticeable alignment of institutional positioning with technical momentum. Whether ADA can sustain gains above current resistance levels will likely depend on continued capital inflows and broader cryptocurrency market sentiment in the coming weeks.

Cover image from the ChatGPT, ADAUSD chart on Tradingview