Crypto whales scoop up Cardano amid a market crash as a bottom accumulation signal emerges

▲ Cardano (ADA)

Cardano (ADA) is testing the market’s resilience by building a strong support level backed by strong whale support and exchange outflows, even amid a broader market crash.

According to cryptocurrency media outlet BeInCrypto on February 6 (local time), Cardano fell nearly 20% to around $0.22 after breaking down from a descending channel, before staging a sudden rebound of about 20%. The long lower wick seen during this rebound suggests the influx of strong buying interest near a key support level.

On-chain data analysis indicates that this rebound is not merely a technical phenomenon but is supported by genuine spot demand. On February 5, when the market sell-off occurred, net exchange flows reversed sharply from an inflow of $2.1 million the previous day to a net outflow of $12.08 million. This suggests investors opted to move Cardano into private wallets and accumulate at lower prices rather than join panic selling. According to data from Santiment, whales holding between 10 million and 100 million ADA strengthened their positions by acquiring an additional 150 million ADA worth about $40 million since early February.

The unwinding of leverage in the futures market is also viewed as a positive factor for future price stabilization. Cardano’s open interest has dropped by about 41%, from $841 million in mid-January to approximately $494.7 million currently. Funding rates have likewise shifted to neutral or slightly negative levels, significantly reducing the risk of forced liquidations driven by excessive long positions. Analysts note that as speculative capital exits, funds from value-focused investors are entering, laying a healthier foundation for price recovery.

However, subdued overall market sentiment remains a factor limiting upward price momentum. The positive investor sentiment index has plunged by about 90%, from 57 in mid-January to a recent monthly low of 6, forming a bottom zone. While whales continue to accumulate with conviction, reactions from retail investors and the media remain lukewarm. If this psychological gap is not resolved, the durability of the rebound may weaken, and prices could once again face downside pressure.

*Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses based on it. The content should be interpreted solely for informational purposes.*

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