Cardano whale spends $161 million to buy ADA, is $0.35 the key watershed?

On January 27, news emerged that despite the ongoing pressure on Cardano (ADA) price, on-chain funds are sending completely different signals. Although ADA has declined by approximately 19% over the past two months, large wallet holders continue to add positions against the trend. According to Santiment data, the “whale” addresses holding between 100,000 and 100 million ADA have absorbed about 454 million ADA during this period, worth approximately $161 million at current prices.

In stark contrast to the big funds, retail investors are exiting. Over the past three weeks, small wallets holding 100 ADA or less have been continuously selling, with a total of over 22,000 ADA sold. This “whale buying, retail exit” pattern is often seen as a potential precursor to a market turning point in the crypto space. Santiment notes that similar patterns in history typically appear before the market stabilizes and prepares for a rebound.

Price-wise, ADA surged in early January but quickly retreated, currently hovering around $0.35, with a slight rebound of over 2% in the past 24 hours. Although the short-term trend remains volatile, the on-chain fundamentals have not weakened. Data from AdaStat shows that the number of Cardano wallet addresses has increased from 3.17 million in November last year to 3.228 million, indicating new users continue to enter the ecosystem.

The performance of DeFi also provides support. According to DefiLlama, the total value locked (TVL) in the Cardano network is currently about $162 million, with a growth of over 1.5% in the past 24 hours. Since October last year, the amount of ADA locked has remained high, suggesting that funds have not been significantly withdrawn due to price corrections.

From a technical perspective, some analysts believe ADA is currently oscillating within a historical demand zone, with clear signs of accumulation. If this support area remains effective, the potential upside targets are pointed at $0.63, $0.93, and even $1.32. However, the short-term remains challenged by selling pressure, and only when buying strength can break through these resistance levels might the market truly open up to the upside.

With whale accumulation continuing, user base growth, and stable DeFi locking, Cardano’s long-term potential remains optimistic, and the $0.35 level is becoming a key battleground between bulls and bears.