January 22 News, Cardano shows signs of stabilization after consecutive pullbacks. ADA has rebounded slightly by about 1.8% in the past 24 hours, but over the past 7 days, it still declined by nearly 9%, with the price remaining below the short-term trend line. On the surface, this appears to be a continuation of weakness, but on-chain and derivatives data reveal a more complex structural change.
Latest data shows that on January 6, Cardano’s trading volume in the decentralized spot market approached $1.49 million, coinciding with the day’s phase high. Since then, both price and participation have declined. By January 22, the spot trading volume was only about $68,000, a drop of over 95% in just two weeks. Since spot trading does not involve leverage, this indicator often reflects real demand; a sharp contraction suggests retail funds are significantly retreating.
Technical analysis also confirms this change. After ADA broke below the 20-day exponential moving average in mid-January, the short-term trend shifted from bullish to bearish. Similar signals in history have triggered sharp corrections, such as in October and December 2025. Therefore, when spot buying shrinks and the trend weakens, prices are more likely to be dominated by bears.
However, the behavior of whales is quite different. Wallets holding over 1 billion ADA have been continuously increasing their holdings since January 14, accumulating about 1.01 billion more ADA, estimated to be worth over $360 million at current prices. Subsequently, addresses holding between 10 million and 100 million ADA also started replenishing on January 17. These large holders entered after the trend weakened and trading volume dried up, indicating they prefer to position during downturns rather than chase rallies.
Meanwhile, the derivatives market’s short positions have rapidly expanded, with a significant increase in bearish leverage concentration. When spot liquidity is low and short positions are overly crowded, a rebound can quickly trigger liquidations, amplifying volatility.
From key price levels, around $0.37 is the first potential bearish pressure zone. Once broken, it could trigger a chain of short covering, with $0.39 to $0.42 becoming the next risk area. Conversely, if the price falls below and stabilizes under $0.34, the weak structure will regain dominance.
Currently, Cardano is caught in a tug-of-war between retail retreat and whale accumulation. The coexistence of weak spot activity and leveraged bearishness often indicates that a larger wave of volatility is brewing.
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