Recent whale activity in Cardano (ADA) has surged, indicating that market sentiment may be shifting towards optimism.

Given that whales have accumulated 230 million ADA in just three days, the impact on ADA's price movement could be significant, especially in light of short positions being liquidated.

An analyst from COINOTAG stated: 'Despite facing market challenges previously, the accumulation by major holders indicates their confidence in ADA's prospects.'

Cardano whales have recently accumulated 230 million ADA, indicating a shift in bullish sentiment, and breaking through 0.70 USD is crucial for future upward movement.

Cardano whales are optimistic

In the past 72 hours, whales holding 10 million to 100 million ADA have accumulated over 230 million ADA, valued at over 15 million USD at current prices. The shift from selling and holding neutral to accumulation indicates a change in sentiment, with whales being optimistic about ADA's potential in Q2 2025. Despite recent market struggles, their recent activities suggest confidence in the altcoin's recovery.

Whale accumulation is usually a bullish indicator, as these investors have a significant impact on the market. Accumulation is crucial as it provides the necessary support for ADA to break through resistance levels.

Cardano's liquidation chart shows that once ADA rises above 0.70 USD, approximately 15 million USD in short contracts will expire. This presents a key opportunity for altcoins. Short sellers may be forced to close their positions, potentially leading to a short squeeze and driving prices up.

Potential liquidation of short positions could create upward pressure, preventing further declines and allowing ADA to recover. The combination of whale accumulation and impending liquidation of short contracts may provide Cardano with the momentum needed to break free from recent downtrends.

Can ADA price break through 0.70 USD?

At the time of writing, Cardano's price is 0.65 USD, maintaining above the critical support level of 0.62 USD. The altcoin has performed poorly in recent weeks, but whale buying activity has brought hope for recovery. Breaking through the 0.70 USD threshold could lead to further gains.

If ADA successfully breaks through 0.70 USD, it will gain the momentum needed for continued recovery. Turning 0.77 USD into a support level would provide additional impetus for Cardano to reclaim recent losses and potentially challenge higher resistance levels.

However, if Cardano fails to break through 0.70 USD, the price may return to the support level of 0.62 USD. Losing this support level would invalidate the bullish outlook and could see ADA drop to lower levels around 0.58 USD, continuing the ongoing downtrend.

Conclusion

The recent accumulation by Cardano whales and the potential impact of short contract liquidations could influence the altcoin's price movement in the short term. With the critical price level at 0.70 USD, ADA's ability to break through may signal a significant shift in momentum, potentially indicating the market entering a new growth phase.