Cardano’s ADA token breached its February lows last weekend, dropping to around $0.234 before bouncing nearly 6% back into its two-month range. Despite significant whale accumulation of 220 million ADA and sustained long bias from top Binance traders, technical analysis indicates the bears maintain control. The longer-term trend remains downward, and analysts suggest a bearish swing trading bias is warranted until key resistance levels are broken.
Last weekend, Cardano‘s ADA token breached the lows it established in the first week of February. The price then bounced nearly 6% from the $0.234 local lows and was trading within the two-month range once again.
Recently, reported that Cardano whales accumulated 220 million ADA over a week. Their total holdings measured 13.84 billion across large wallets and reflected deliberate absorption.
Moreover, top traders on Binance maintained a long bias despite the recent volatility. This raised the question whether the weekend ADA price drop was a liquidity sweep.
Cardano has been forming lower lows and lower highs since October 2025. These are characteristic of a downtrend, and the Directional Movement Index agreed but has been indecisive recently.
The range formation between $0.245 and $0.30 since February has led to the DMI showing no strong trend. At the same time, the OBV was also within a range, exhibiting a balance between aggressive buyers and sellers.
The moving averages came closer, but no bullish crossover was seen. This agreed with the range formation—there was no significant momentum, and a price move above the moving averages can get undone quickly.
Despite the whale accumulation, the swing trader bias should remain bearish. This was because of the price structure on the 4-hour chart and higher timeframe seller prevalence.
The $0.233 and $0.278 levels marked swing points traders should watch. A bounce to $0.26-$0.27 would present a selling opportunity targeting the $0.233 lows.
Until the $0.278 swing level is breached, the bias can remain bearish. Beneath $0.233, the next southward targets would be $0.222 and $0.205, confirming a breakdown from the range.
Cardano sank below the lows of the range from February but quickly bounced back within the range. As things stand, the bears have the upper hand, and more downside remains likely for ADA.
