Can Cardano End Its Downtrend? What Impact Will Whale Support Have?

▲ Cardano (ADA)

Cardano (ADA) has entered a full-fledged recovery phase, attempting to break through a key Fibonacci retracement resistance level amid strong accumulation support from whales, in a move aimed at ending its downtrend.

According to cryptocurrency outlet The Crypto Basic on February 25 (local time), Cardano has halted its recent steep decline and is posting gains compared to the previous day as dip-buying demand flows into the market. Market participants are paying close attention to whether this rebound could signal not just a technical bounce but the beginning of a long-term trend reversal. In particular, a stable breakout above the key Fibonacci retracement resistance level is seen as a crucial factor in determining future price direction.

Cardano is currently testing an important technical resistance zone at the Fibonacci retracement level, while momentum indicators are gradually improving. Strong selling pressure that had suppressed prices in recent weeks is easing, and key technical indicators, including the Relative Strength Index (RSI), are rebounding from oversold territory in an attempt to reverse upward. As market sentiment shifts from seller dominance to buyer advantage, trading volume is also showing a moderate recovery.

On-chain data analysis shows that Cardano whales have been steadily increasing their holdings, using the recent price decline as an opportunity to buy at lower levels. Over the past six months, large holders have accumulated an additional 819.4 million ADA, forming a strong psychological support level in the market and acting as a buffer against further downside risk. The long-term conviction of investors with substantial capital is helping to ease retail investor anxiety and strengthen overall market fundamentals.

If Cardano maintains its current upward momentum and breaks above the Fibonacci 0.382 retracement resistance level formed near $0.30365, the next target could open up to around $0.32916. Should the breakout attempt fail, the price may undergo a correction to retest lower support levels; however, as long as whale accumulation continues, downside is expected to remain limited. The market is currently experiencing heightened volatility, moving in tandem with trading volume and the performance of major assets such as Bitcoin (BTC).

The digital asset market is currently in a complex environment where caution and anticipation coexist ahead of policy changes under the Donald Trump administration and upcoming macroeconomic data releases. Cardano continues to focus on restoring market confidence through its independent technology development roadmap and ecosystem expansion efforts, and this attempt to break through technical resistance is expected to serve as a critical test in that process. Investors should remain mindful of short-term volatility and carefully analyze trend changes in key indicators when formulating their response strategies.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.