Cardano (ADA) 240 million ADA accumulation fueled a 22% rally, but bearish on-chain and derivatives data alongside the daily chart raise concern.
Over the past five trading days, Cardano (ADA) has shown an impressive 22% price jump, and during this period, whales added 240 million tokens. This massive acquisition appears to be the key driver behind ADA's rally.
On August 2, 2026, a well-followed crypto analyst shared a Santiment report disclosing that whales have accumulated over 240 million ADA tokens over the past five trading days. In fact, the analyst stated that this accumulation helped fuel the 22% price surge ADA experienced during the same period.
However, the upward momentum now seems to be fading, as the token declined 1.55% today, on August 3, 2026. This fall has brought the ADA price down to $0.1828. Despite losing momentum, market participants have shown interest in the asset, as evidenced by the trading volume, which jumped over 13% to $543 million during the same period.
Looking at the on-chain tool Nansen, it appears that the top 100 addresses have reduced their ADA holdings by 132% compared to the previous day. Meanwhile, those with consistent profits on Hyperliquid have maintained a net short position of 250,000 ADA, up 150% compared to the previous day.
In addition, derivatives metrics show a similar kind of development over the past 24 hours. According to CoinGlass, ADA's long/short ratio stands at 0.985, falling below 1, indicating strong bearish sentiment among traders. Meanwhile, $0.182 on the downside and $0.193 on the upside are the two key liquidation levels, according to the exchange liquidation map.
In fact, traders at these levels opened $5.11 million worth of long-leveraged positions and $9.36 million worth of short-leveraged positions. These bets by traders over the past 24 hours suggest that traders with a bearish bias are dominating, while bulls, at the same time, appear to be exhausted.
However, these positions could be liquidated if the ADA price moves in either direction. Looking at the current sentiment, if the asset falls to the $0.182 level, a massive $5.11 million worth of long-leveraged positions will be liquidated.
On the other hand, if the sentiment shifts and the price not only jumps but also crosses the $0.193 level, a massive $9.36 million worth of short-leveraged positions will be liquidated.
According to TradingView's daily chart, ADA's short-term bias appears bearish, and the current level seems to be a make-or-break point for the asset. Following a recent 22% price jump, ADA reached the key resistance level of $0.189, a level that has a history of triggering selling pressure and price declines.
Since June 2026, ADA has reached this level on two occasions: on June 15, 2026, and July 4, 2026, and each time, it recorded a price decline.
Based on the current price action, if the ADA price fails to break the $0.189 level, it could repeat history by falling and may see a price dip of 17% and reach the $0.155 level. On the other hand, if the sentiment shifts and the price breaks and closes the daily candle above the $0.189 level, it could see a potential price uptick of 15% and may reach the $0.22 level.
At press time, ADA's broader market sentiment remains bearish, as the price continues to trade below the 200-day Exponential Moving Average (EMA), indicating strong seller dominance.
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