Cardano’s Bullish Divergence Fired and Failed — $540 Million in Whale Selling To Blame?
Cardano's bullish divergence failed after a 24% surge due to over $540 million in coordinated whale selling overwhelming retail buying.Summary
Cardano (ADA) exhibited a textbook bullish divergence on the daily chart, where the price made a lower low while the Relative Strength Index (RSI) made a higher low, signaling weakening bearish momentum. This setup resolved with a nearly 24% surge to $0.31 on February 25. The Money Flow Index (MFI) confirmed genuine buying support during this rally, indicating volume-backed accumulation by retail investors.
However, the rally quickly collapsed. On-chain data from Santiment revealed that between February 24 and 27, major whale cohorts simultaneously distributed approximately 2.15 billion ADA, amounting to about $540 million in selling pressure at the average price of $0.27. This massive whale exit overwhelmed the spot buying absorbed by retail.
Currently, ADA's structure remains bearish, though the divergence framework is technically intact if a new swing low forms. Key price levels are $0.31 for upside confirmation and $0.26, $0.23, and $0.21 for downside support. The article concludes that the key signal for a sustained recovery is not a price level but the resumption of significant accumulation by whales; without it, the price structure may continue trending lower.
(Source：BeInCrypto)