At the time of writing, Cardano (ADA) continues to attract attention as bulls return strongly, helping this altcoin's price rise by 2.82% in just the past 24 hours.
During that period, both whales and spot investors accumulated a significant amount of ADA. However, data from the perpetual futures market revealed a contrasting trend, showing a clear divergence from their net buying trend.
This contrast makes the short-term outlook for ADA a topic worth analyzing thoroughly at this moment.
Whales and spot investors are aggressively accumulating ADA
It is not surprising that the focus of the largest market fluctuations belongs to 'whales' – wallets holding between 100 million and 1 billion ADA.
According to data from Santiment, during just two days on August 9 and 10, this group aggressively accumulated up to 200 million ADA, equivalent to about 166 million USD.
Not stopping there, the accumulation wave also spread to spot investors. Data from CoinGlass shows that during the same period, the net buying amount on spot exchanges reached up to 11 million USD ADA.
Not stopping there, shortly after, spot buyers continued to add another 3.61 million USD ADA, contributing to igniting the optimistic sentiment and price increase expectations in the market.
Are perpetual futures traders cooling down?
However, the attention from perpetual futures traders seems to be cooling down. In the past 24 hours, the Long-to-Short ratio has fallen below the mark of 1 – indicating that selling pressure is dominating over buying pressure.
Trading volume also recorded a decrease of 21.49%, down to 2.14 billion USD, equivalent to a drop of about 459 million USD, clearly reflecting the slowdown in market activity.
Nevertheless, the overall picture remains quite stable. The funding rate continues to maintain a significantly positive level of 0.0108%. This indicates that although short orders are overwhelming in number, the majority of the derivative contract volume is still in Long positions – and these traders are still willing to pay the funding rate.
Can ADA break through the 'wall' of $0.83?
The ability of ADA to reclaim the $1 mark will depend on whether this coin can conquer three key resistance levels on the chart – respectively at $0.83, $0.88, and $0.93.
Although it has been quite a while since ADA approached these price levels, history shows that the last time the price touched the $0.83 level, the market immediately witnessed a decline of over 20%.
If buying pressure at this level continues to be weak, the risk of a deep drop is unavoidable. On the contrary, a decisive breakthrough above $0.83 could act as a catalyst for a strong acceleration, opening up opportunities to get closer to the $1 target.
