Cardano Price Bounce Meets $40 Million in Whale Support — But Can It Beat The Risks?

Cardano price rebounded sharply after breaking down from a falling channel and sliding nearly 20% to $0.22. The quick 17% recovery toward $0.25 attracted fresh dip buyers. However, with sentiment still weak and key technical risks unresolved, the rebound is now being closely tested. Yet, there are reasons to believe that this ADA price bounce could be the start of something bigger. Strong Buying Shows Real Demand For ADA Cardano’s rebound was possibly backed by strong spot demand. After falling nearly 20% on February 5, after breaking the falling channel, ADA quickly rebounded, climbing back toward $0.25. The long lower wick seen on the last candle suggests buying pressure near the support. Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Bearish Price Structure: TradingView On the same day when the market crashed, spot netflows flipped sharply negative, reaching around $12.08 million, compared with $2.1 million the previous day. This shows that traders were actively withdrawing ADA from exchanges and accumulating during the crash, rather than preparing to sell. Exchange Flows: Coinglass However, this accumulation is occurring while market sentiment around Cardano remains unusually weak, and that’s the biggest risk at the moment. Positive sentiment has fallen sharply since mid-January, dropping from around 57 to near 6, a 90% dip and a monthly low. Cardano’s strongest moves were often supported by rising optimism, as seen towards the end of January, when a local positive sentiment high coincided with a 9% price bounce. Eroding Sentiment: Santiment This time, buying pressure and the corresponding bounce are aligning with eroding sentiment, meaning confidence is still weak. Even so, sustained exchange outflows during a panic sell-off remain a constructive signal and form the first pillar of Cardano’s recovery attempt. Derivatives Reset Has Reduced Leverage-Driven Risk The second major factor supporting Cardano’s ...