Whales Stocking Up on ADA, Charts Tightening. Is the Explosive Lift-Off or Head-Fake Coming?

Whales accumulated ADA, signaling strong long-term conviction. Short-term activity reflected a bullish outlook, showing the market's readiness to support a rally.

Whales have been busy stocking up on ADA, accumulating a whopping 410 million in the past month alone. This massive buying spree signals strong long-term conviction, especially since most of the purchases occurred during a recent market correction that saw total market capitalization fall to $3 trillion.

As the chart below from COINOTAG shows, ADA has a good chance of continuing its upward trend in the coming days.

Source: COINOTAG

The chart shows that ADA is currently trading at a crucial resistance level of $0.7034, a price zone it has tested for the past ten days.

To determine whether ADA has enough momentum to break out of this resistance and move toward higher price levels, analysts examined the Liquidation Heatmap to identify any liquidity clusters that could attract price movement and pull it toward those zones. As highlighted in the image below, there are several liquidity clusters stacked above the current market price, with the largest cluster at around $0.74.

Source: CoinGlass

This analysis suggests that ADA could indeed move above the current resistance level and continue toward the mentioned price levels on the chart.

In the derivatives market, bullish sentiment persists as long traders keep opening new positions. Open Interest—which measures the value of unsettled derivative contracts—has increased, now reaching $778.99 million, as visible in the chart below from CoinGlass.

Source: CoinGlass

This increase signifies more active positions and overall market engagement. To understand the directional tilt, we can look at the Funding Rate, which currently stands at 0.0084% and confirms that the majority of positions are long, further reinforcing the broader bullish sentiment.