Cardano’s native token ADA has rebounded sharply from June lows, gaining 3.5% in 24 hours to trade near $0.17, buoyed by cooler-than-expected US CPI data that lifted the broader crypto market. A bullish inverse head-and-shoulders pattern has formed on the chart—three lows with a deeper middle trough—signaling weakening sellers and a potential trend reversal, according to X analyst CryptoJack.
Celal Kucuker, another prominent analyst, believes ADA has bottomed and is on the verge of a parabolic rally toward a new all-time high of $5. This optimism is reinforced by on-chain data: whales holding 100,000 to 100 million ADA have accumulated over 25.6 billion coins, while smaller retail wallets have reduced exposure. Exchange netflows further support the bullish thesis, as consistent outflows over recent weeks indicate investors are moving ADA to self-custody and reducing immediate selling pressure.
However, the Relative Strength Index (RSI) has surged above 70, placing ADA in overbought territory and hinting at a possible near-term pullback. While whale accumulation and the technical breakout suggest strong upside potential, the overbought signal calls for caution among short-term traders.
