TLDR
- Cardano (ADA) experienced a sharp 12% single-day increase, moving from approximately $0.26 to surpass $0.31
- Large holders accumulated approximately 819 million ADA tokens during the previous six-month period
- Grayscale increased ADA’s allocation in its Smart Contract Platform fund to exceed 20%
- Technical analysis reveals a bullish ABC formation on the 4-hour timeframe with a $0.38 price objective
- Open interest in futures markets grew by roughly 30% in one day, indicating new money flow
Cardano (ADA) delivered an impressive 12% advance on February 26, pushing prices from the $0.26 level to beyond $0.31. The move was accompanied by trading volume that reached nearly four times typical daily activity.
This breakout occurred after several weeks of sideways trading near a critical support level between $0.24 and $0.26. Notably, this price zone corresponds to where ADA established its bottom during the prior market cycle.
ADA briefly touched $0.220 on February 6 before recovering. Following that low, the asset has successfully defended the $0.24–$0.26 region as foundational support.
Blockchain data reveals that major holders purchased approximately 819 million ADA tokens throughout the last half-year. Remarkably, this accumulation phase occurred during a period of declining prices, indicating these sophisticated investors perceived the downtrend as a strategic buying opportunity.
Investment firm Grayscale adjusted ADA’s allocation in its Smart Contract Platform Select Capped Index fund to over 20%. This adjustment positions ADA as the third-largest component in the fund.
Institutional and Whale Buying
While Grayscale’s rebalancing follows index-tracking methodologies, it nonetheless underscores ADA’s persistent relevance among leading smart-contract blockchain platforms.
Derivatives markets showed futures open interest climbing by approximately 30% within a single trading session. Market observers interpret this expansion as evidence of new capital deployment rather than merely liquidation of short positions.
The Relative Strength Index hasn’t reached overbought conditions yet, suggesting momentum indicators still allow for additional upward movement.
ABC Pattern and Key Price Levels
Chartist SmellyTaz spotted a bullish ABC wave structure developing on the ADA/USDT 4-hour timeframe. The initial Wave A extended from $0.22 to $0.28 on February 6. Wave B then corrected to $0.25 by February 11.
Wave C initiated from that corrective low but encountered resistance at $0.30 on February 15. ADA subsequently retreated to a support area around $0.26–$0.27, identified as the BC retracement level.
Wednesday’s intraday peak at $0.31 remained below the projected wave C completion target. ADA has since retreated approximately 6% from that session high.
The technical analyst anticipates Cardano will revisit a “reload” support band between $0.27 and $0.28. A successful bounce from this zone could finalize the ABC wave structure with an upside objective near $0.38.
This technical setup would become invalidated should ADA break below the BC2 support level.
Cardano creator Charles Hoskinson recently emphasized the forthcoming Midnight privacy initiative, which has secured early collaborations and focuses on enterprise applications with regulatory compliance.
The total value locked across the Cardano ecosystem remains beneath prior peak levels despite recent price appreciation.
ADA’s nearest support level resides around $0.31, while resistance appears near $0.34 and the 50-day moving average.
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