This Cardano Setup Triggered a 32% Rally Before —On-Chain Metrics Hint at a Repeat?

Cardano's price action is forming a bullish divergence on the daily chart—where price makes a lower low but RSI trends higher—a pattern that preceded a 32% rally late last year. This setup is currently developing, contingent on ADA holding above $0.35. Supporting this potential rally is significant accumulation by whales (wallets holding 1M to 10M ADA), who increased holdings by 1.8% recently. Furthermore, long-term holders (180-365 days) are showing strong conviction, with their spent coin activity collapsing by over 99%, indicating they are not selling into weakness. However, short-term holders (30-60 days) have become significantly more active, introducing potential supply risk if the price bounces. For a sustained move, Cardano must reclaim the $0.41 level (the 50-day EMA), which previously capped the last rally. A key difference this time is the Chaikin Money Flow (CMF) trending higher and staying positive, suggesting stronger capital inflows than before. A break below $0.35 would invalidate the bullish divergence.

(Source：BeInCrypto)