- On-chain data analysis shows Cardano holders have been downsizing amid ongoing market correction.
- Santiment’s analysis shows that a bullish trend often forms after heightened crowd fear.
- The ADA/USD pair will easily rally to its all-time high after turning the resistance level around 88 cents into a support level.
Cardano (ADA) holders have bought into the September crypto fear it seems, according to on-chain data analysis from Santiment.
While this “peak FUD” has seen retail holders and some whales downsize their positions, a series of major bullish fundamental developments, including the clearance of a major legal overhang for Charles Hoskinson, is creating a classic contrarian setup for traders.
Related: Cardano’s Potential and Pitfalls Weighed as Analyst Sets $15 ADA Target
Why is Cardano Price Getting Bullish Amid a Bearish Crowd?
Are the Whales Buying the ADA Dip?
According to on-chain data analysis from Santiment, Cardano wallets, with a balance of between 1 million and 10 million ADA, sold 30 million coins. As a result, this group currently holds 5.57 billion ADA coins.
However, Santiment stated that prices typically move in the opposite direction of the crowd’s expectations. Moreover, major stakeholders often accumulate in bear markets, especially when small holders sell their bags out of impatience and frustration.
Were Cardano’s Upgrade Tactics to Siphon Funds?
No. Cardano founder Charles Hoskinson released the highly anticipated audit report regarding the ADA Voucher program. The allegations that Cardano insiders stole over $600 million of Voucher program funds through blockchain upgrades were discredited by the audit released on Wednesday.
“After review of tens of thousands of documents, a forensic on-chain and traditional forensic analysis, and eighteen formal interviews of current employees, former employees, Voucher Holders, service providers, community members, and other third parties, the Investigation determined that each of the allegations related to the Topics of Investigation do not have any basis,” the report noted.
What Network Upgrades Are Ahead?
Cardano’s macro bullish outlook is also bolstered by the highly anticipated Leios network upgrade. Moreover, the Leios upgrade could solve the blockchain trilemma, as it could optimize Cardano’s scalability, security, and decentralization without compromising any of them.
The upcoming Leios upgrade has made ADA a great investment for long-term holders as it will make the network DeFi-friendly and highly competitive with other layer one chains.
Can ADA Break the $0.88 Resistance to $1.20?
Cardano price has formed a bullish trend since rebounding from its bear market lows of about $0.24. The large-cap altcoin, with a fully diluted valuation (FDV) of about $36 billion and a 24-hour average traded volume of around $1.1 billion, has formed higher highs and higher lows in the weekly timeframe.
In the daily timeframe, ADA price has already broken out and retested a falling logarithmic trend established during the first half of 2025. As Coin Edition reported, if ADA price consistently closes above 88 cents in the coming days, a rally towards $1.2 will be inevitable in the subsequent weeks.
Related: Cardano (ADA) Price Prediction: $0.92 Breakout In Play As Hoskinson Cleared Of Allegations
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