Cardano Price Holds Support as Whales Add 819M ADA and $0.30 Looms - The Market Periodical

Key Insights:

• Cardano price traded near $0.26 with traders watching resistance at $0.30.
• Santiment data showed that 100K-100M ADA wallets added about 819M ADA in 6 months.
• Grayscale’s smart contract fund increased ADA weighting to approximately 20.20% at press time.

Cardano price was close to $0.26 on Wednesday after a choppy week for crypto markets. ADA displayed a slight rebound in the past few hours following a slight pullback. Even so, the token is still down around 7% over seven days with fresh tariff concerns.

Analysts are watching whether ADA can continue the bounce and recover the nearby resistance. Technical indicators indicate a slightly bullish tilt in the short term, with attention on the $0.30 level as the next threshold.

Cardano Price Holds Near $0.26 as Structure Shift

Bitcoinsensus flagged what it called a monthly structure shift on ADA’s chart. The analysis described a multi-year correction range following an earlier expansion cycle. It also observed a recent response from the bottom of that range.

The same view suggested a higher timeframe momentum, trying to build. Historically, the account said, significant expansions followed long periods of compression. That makes the present zone a possible transition area.

This framing is important as monthly ranges are often the benchmark for medium-term positioning. If the lower boundary holds, then traders might use dips as range support. However, any break below that band can again give rise to bearish cycle comparisons.

ADA Targets $0.30 Resistance as Volatility Stays High

ADA has tried small recoveries, but follow-through has remained limited. Traders still keep half an eye on $0.30 as the nearest resistance level. A clean reclaim could help sentiment and turn the tide.

Technical indicators highlighted by analysts signal a slightly bullish trend. Still, traders are wary after recent whipsaws on major tokens. As a result, many seek confirmation by way of stronger closes and rising volume.

The greater market picture has also provided noise to the price action. Renewed worries about US tariff developments have been a drag on risk appetite. That pressure has made attempts to go upside down uneven across altcoins.

Whales Add 819M ADA as Supply Concentration Rises

On-chain data has pointed towards heavy accumulation during the drawdown. Santiment said wallets holding 100,000 to 100 million ADA show an increase in exposure over the last 6 months. That period saw a decline in the ADA from about $0.90 to about $0.26.

Santiment said these large wallets added about 819.14 million ADA during the dip. The data also indicated an increase in the supply concentration in this cohort. Their share rose from 66.84% to 68.44% in six months.

The total ADA across these wallets increased to around 25.35 billion tokens. That steady buying is suggestive of stronger hands holding on to interest at multi-month lows. However, accumulation is not a guarantee for a fast reversal in Cardano price.

Shorts Cluster as Grayscale Raises ADA Weight in SCPXC

TapTools said ADA sits underneath a pocket of trapped shorts, which could put pressure on any move higher. The account highlighted that with each push-up, the risk of liquidation to the short sellers increases. In crowded conditions, it said, squeezes can speed up once breakouts begin.

Institutional positioning has also been a focus, as the role of ADA in a major fund has grown. Grayscale’s Smart Contract Fund, currently marketed as the CoinDesk Smart Contract Platform Select Capped Index, has removed ADA’s weighting over time. In early January, the fund had an allocation of 18.55% to ADA.

Grayscale then increased ADA from 19.50% to 19.55% in the middle of February, then to 20.07%. On Feb. 20, the weighting was 20.34% before it slackened to 20.20% at press time. ADA remains the third-largest component, behind Solana at 28.53% and Ethereum at 28.39%, with other allocations distributed across Hedera, Avalanche, and Sui.

The fund had $1.8 million in assets under management as of February. 3, with a $5.81 NAV per share and 310,500 shares outstanding. Grayscale also pulled ADA from its CoinDesk Crypto 5 ETF earlier this month after it failed to meet inclusion criteria. Meanwhile, the manager is pursuing a standalone spot ADA ETF, pending SEC approval.