Cardano’s Spot Market Just Collapsed 95% — Here’s Why Whales Bought The Breakdown

Cardano's spot trading volume on decentralized exchanges (DEXs) collapsed by over 95% between January 6 and January 22, signaling a significant withdrawal of retail participation after the token lost its 20-day EMA trend. Despite this sharp drop in activity and subsequent price weakness, large Cardano holders, specifically addresses holding over 1 billion ADA, began accumulating heavily around January 14, adding approximately 1.01 billion ADA during the correction. A second whale group (10M-100M ADA holders) also started buying on January 17. This accumulation occurred after the technical breakdown and collapse in spot interest, suggesting whales were positioning against the prevailing bearish sentiment. Simultaneously, derivatives markets became heavily short-biased, with short liquidation exposure being 2.5 times greater than long exposure. The analysis suggests that while retail has left, whale accumulation amidst crowded short positions sets the stage for a potential sharp upward move if key resistance levels, starting near $0.37, are breached. The bearish case is only confirmed if ADA breaks and holds below $0.34.

(Source：BeInCrypto)