Cardano Rebound Backed by $40M Whale Buys, but Risks Remain
Cardano bounced sharply after breaking down from a falling channel and sliding nearly 20% to $0.22, then posted a quick 17% recovery toward $0.25. Spot netflows flipped negative on the crash, reaching around $12.08 million versus $2.1 million the day before, and the long lower wick on the last candle points to buying pressure near support.
Sustained exchange outflows during that panic sell-off offer a constructive signal for the recovery attempt. Derivatives positioning has also reset: open interest fell from about $841 million in mid-January to roughly $494.7 million, down more than 40% in less than a month and well below the September peak near $1.95 billion.
Funding rates have turned slightly negative, reducing the risk of forced selling from overleveraged longs and creating a healthier base than rebounds driven purely by leverage. Large holders added to their positions through the crash.