Cardano (ADA) hasn’t moved much this week. The price hovers near $0.587 at the time of writing despite a 4% weekly gain. One-month performance is still red at –12%, but ADA is up nearly 60% year-to-date.
Now, while the charts may look boring, the metrics under the surface suggest something’s building.
Funding Rate Signals Retail Traders Are Still Betting Against ADA Price
Across most major exchanges, ADA’s funding rate remains neutral. That means most traders are undecided between going long and short. It also means sentiment hasn’t shifted yet, even after the bounce from $0.50.
Funding rates (ADA): Coinglass
Funding rate is the cost to hold leveraged positions in perpetual futures. A negative rate shows the crowd expects prices to drop, but if the trade becomes too crowded, a squeeze can flip the market fast. As the space remains undecided, a sentiment-heavy trade (preferably a whale) can push the prices in either direction.
Exchange Netflows Stay Negative; Another Clue of Accumulation
Even though the price hasn’t broken out, net flows remain firmly negative. This means more ADA is flowing out of exchanges than going in, usually a sign that holders aren’t looking to sell soon.
Cardano price and exchange inflow remain muted: Coinglass
Negative net flows often coincide with accumulation. When traders withdraw coins, they’re usually moving them to cold wallets, not prepping them to dump.
Holder Count Keeps Climbing While ADA Price Lags
One of the clearest signs of conviction is the steady rise in total ADA holders. Based on six-month data, the number of wallets holding ADA has just hit a new year-to-date (YTD) high of 4.5 million. This happened even as the price dropped from $0.90 to $0.58.
A record surge in the number of holders: Santiment
In other words, long-term ADA investors continue to add. The price may be going sideways, but the broader base of ownership is growing. This kind of holder growth often sets the stage for a stronger upside once the trend flips.
Cardano Price Structure: Descending Triangle Is In The Works
On the chart, ADA is still inside a descending triangle, a pattern that typically breaks to the downside. But here’s the twist: instead of slipping lower, the price is now pushing against the upper trendline near $0.612.
If that trendline breaks, there’s not much resistance up to $0.66. If ADA breaks out, the move could be sharp. But the pattern remains bearish unless a clear breakout occurs.
Cardano price action: TradingView
The key support lies around $0.537. A drop below that flips the structure bearish again and opens up room toward $0.51.
However, there is some divergence to take into consideration, all thanks to the On-Balance Volume (OBV). While ADA price has traded mostly flat for days, OBV has been quietly trending up. That’s a classic early signal of stealth accumulation when buyers step in without moving the price much.
OBV tracks volume flow. It adds volume on up days and subtracts it on down days. When OBV rises ahead of price, it often shows that capital is entering without triggering major price shifts; a bullish sign.
