Whale activity intensified after 750 million ADA entered Binance on December 10, creating a sudden surge in liquidity that typically signals an increase in selling intentions.
ADA traders reacted quickly because large flows often precede spikes in volatility, particularly during early trend reversals.
The scale of this transfer introduced uncertainty, but Cardano (ADA) held near $0.46, showing surprising resilience.
Furthermore, the market interpreted the influx of capital as a test of the strength of demand rather than a guaranteed liquidation. This change allowed buyers to assess absorptive capacity at current levels.
On top of that, ADA held its structure above its descending regression breakout, which kept the bullish confidence intact and shifted the focus towards near-term supply behavior.
Cardano breaks free from its regression trend
ADA has broken out of its multi-month downward regression trend, which has guided prices lower since early fall. This breakout signaled a change in dynamics that corresponds to increasing buying pressure on shorter time frames.
ADA also held above the regression ceiling, reinforcing expectations of a possible recovery.
Key resistance zones at $0.48, $0.60, and $0.6975 now set the roadmap for further expansion. Although the trend break alone did not confirm the continuation of the trend, its timing – immediately after a large influx – created a compelling narrative.
The price structure strengthened with each retest, and short-term traders looked to the breakout as the RSI revealed improving momentum.
The RSI was hovering near 50.56, remaining above its moving average and supporting ADA’s attempt to build a healthier trend.
Source: TradingView
One-time buyers maintain control of CVD
Spot Taker Buy CVD continued to show strong buy-side aggressiveness, revealing that Spot buyers absorbed most of the selling attempts in recent sessions.
This dominance indicated conviction and validated ADA’s breakout structure as buyers consistently responded to declines.
Additionally, the upward slope of CVD demonstrated increasing demand, even as whales introduced new liquidity to Binance.
Such behavior generally reflects confidence that outweighs the short-term uncertainty associated with large transfers. However, a strong CVD alone does not eliminate downside risks, even if it strengthens ADA’s foundations.
The continued imbalance allowed bulls to impose pressure via higher lows, while sellers struggled to disrupt momentum.
Therefore, Spot-side engagement remains a critical part of ADA’s current recovery path.
Source: CryptoQuant
Leveraged traders drive up open interest
Open Interest jumped 10.15% to $814.87 million, signaling that leveraged traders are re-entering the market after ADA broke its regression trend.
Rising OI increased the likelihood of volatility, as leverage amplified reactions to liquidations and sudden price acceleration.
This rise in OI aligned with improving Spot metrics, creating a more balanced market structure than previous weeks. Despite this, traders have been monitoring resistance zones between $0.48 and $0.50, where quick OI unwinds could appear.
Nonetheless, the coordinated increase in OI and cardiovascular disease has strengthened ADA’s path toward mid-range expansion.
Source: CoinGlass
Heatmap liquidity threatens short-term fluctuations
Binance’s liquidation heatmap revealed pockets of dense liquidity near $0.48 and $0.50, areas where long liquidations are becoming more concentrated.
These clusters act like magnets because prices often gravitate toward high liquidation density during strong trends.
Cardano’s attempt to push higher interacted with these liquidity layers, and each reaction showed how traders defended their positions during retracement phases.
Additionally, the heatmap indicates a mix of shallow and deep liquidation bands, which increases the likelihood of volatility spikes as Cardano approaches these levels.
While these areas create risk, they also fuel the continuation of the process as liquidation sweeps away weaker hands.
As a result, market participants expect sharp movements once Cardano engages these clusters again.
Source: CoinGlass
Is Cardano ready for what’s next?
ADA showed an improving structure after breaking its regression trend, supported by strengthening CVD, rising Open Interest and a recovery in the RSI. The influx of whales created uncertainty, but cash buyers absorbed the pressure effectively.
As ADA maintains its structure above its breakout zone, recovery from $0.48 to $0.50 could open the door for attempts towards $0.60 and $0.6975.
