Cardano’s 12% Rally: Whale Accumulation and Grayscale Boost Drive ADA Recovery

TLDR

• ADA experienced a double-digit rally exceeding 12% on a single trading day, pushing prices from approximately $0.26 to beyond $0.31
• Large holders purchased approximately 819 million ADA tokens during the past half-year period
• ADA’s allocation in Grayscale’s Smart Contract Platform fund climbed above the 20% threshold
• Technical analysis reveals an ABC wave structure with a projected price objective near $0.38
• Open interest in ADA futures contracts grew approximately 30% within 24 hours, indicating new market participants

On February 26, Cardano (ADA) delivered an impressive 12% price increase, advancing from the $0.26 level to surpass $0.31. The move coincided with trading volumes that reached nearly quadruple the typical daily average.

The breakout concluded an extended period of sideways trading near critical support between $0.24 and $0.26. This price zone represents the same area where ADA established a bottom during the prior bear market cycle.

Earlier in February, ADA briefly touched $0.220 on the 6th before recovering. Following that dip, the token successfully maintained the $0.24–$0.26 range as its foundation.

Blockchain analytics reveal that major token holders acquired roughly 819 million ADA during the preceding six-month window. This accumulation occurred throughout a downtrend, indicating these participants saw discounted prices as attractive buying opportunities.

Investment firm Grayscale increased Cardano’s weighting within its Smart Contract Platform Select Capped Index fund to exceed 20%. This adjustment positions ADA as the third-largest component in the portfolio.

Institutional and Whale Buying

While Grayscale’s rebalancing follows index methodology requirements, it nonetheless underscores ADA’s position among leading smart-contract blockchain platforms.

Derivatives data shows futures open interest jumped nearly 30% in one trading session. Market observers interpret this expansion as evidence of new money flowing into ADA positions, rather than simply liquidated short contracts.

The Relative Strength Index continues trading below overbought levels, suggesting additional upward momentum remains possible based on technical indicators.

ABC Pattern and Key Price Levels

Chartist SmellyTaz spotted a bullish ABC corrective wave developing on the ADA/USDT four-hour timeframe. The initial Wave A advanced from $0.22 to $0.28 during early February. Wave B retraced to $0.25 by February 11.

Wave C initiated from that retrace point but encountered resistance at $0.30 on February 15. ADA subsequently corrected back toward a consolidation area between $0.26 and $0.27, which technicians refer to as the BC retracement region.

Wednesday’s high at $0.31 remained below the complete wave C projection. Since that peak, ADA has declined roughly 6%.

The technical analyst anticipates Cardano will revisit a “reload” support band spanning $0.27 to $0.28. A successful bounce from this area could finalize the ABC structure with an upside objective around $0.38.

The pattern loses validity should ADA break beneath the BC2 support region.

Cardano’s founder Charles Hoskinson recently emphasized the forthcoming Midnight privacy initiative, which has secured preliminary partnerships and focuses on enterprise adoption with regulatory compliance features.

The total value locked across Cardano’s decentralized finance ecosystem continues trading below historical peaks despite the recent price rebound.

Immediate support for ADA rests near $0.31, while resistance appears around $0.34 and coincides with the 50-day moving average.

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