Why Cardano Failed a High-Probability Breakout Despite $340 Million in Whale Buying

Cardano's price attempted a high-probability breakout, initially signaled by a bullish divergence and an inverse head-and-shoulders pattern projecting a 38% rally toward $0.41. However, the breakout failed, marked by a long upper wick, which was immediately followed by a hidden bearish divergence, indicating weakening momentum.

The failure occurred despite visible whale wallets accumulating about $340 million in ADA. A deeper analysis revealed that larger whale groups were quietly distributing significantly more, with total selling reaching approximately $1.32 billion against the $340 million in buying, resulting in a net selling imbalance of nearly $980 million that absorbed the rally.

Furthermore, derivatives traders took the bait, opening large long positions, which now creates significant liquidation risk. If Cardano falls below key support levels like $0.27 or $0.25, a long squeeze could accelerate selling, potentially pushing the price toward a full breakdown target of $0.22.

(Source：BeInCrypto)