• ADA has dropped 9% in the last seven days.
• Major whales have accumulated despite the drop.

Cardano [ADA] has had a turbulent week, losing over 9% of its value amidst broader market bearishness and a lack of significant catalysts. Despite this decline, an intriguing development has surfaced: whale accumulation is rising.

This raises a critical question—could large investors be laying the groundwork for a price rebound?

Price performance and technical analysis

Cardano’s price performance has faced significant challenges over the past week. After multiple failed attempts to break through the $1.12 resistance level, the token now trades at $1.10, reflecting a marked decline. 

Technical indicators show a more nuanced picture. The Relative Strength Index (RSI) is at 58.66, indicating a neutral position that suggests potential momentum if buying pressure increases.

Furthermore, ADA remains above its 200-day moving average, around $0.77. Historically, this level has acted as a critical floor for bullish momentum.

ADA recently formed a golden cross, where the 50-day moving average crossed above the 200-day moving average. However, the failure to break resistance at $1.12 raises questions about whether the token can sustain upward movement in the short term.

Cardano whale accumulation: A potential contrarian signal?

While price trends have been underwhelming, on-chain data reveals a different story. Whale accumulation has surged recently, with wallets holding between 10 million and 100 million Cardano significantly increasing their balances.