Cardano (ADA) is showing renewed strength after recovering from recent lows, with on-chain data pointing to rising confidence among large investors. According to analyst Ali Martinez, whales accumulated more than 30 million ADA over the past week, while network activity has also improved, lending support to the ongoing recovery. Cardano, one of the largest proof-of-stake Layer 1 blockchains by market capitalization, has been working to expand its decentralized finance ecosystem and scaling capabilities through initiatives such as the Hydra Layer 2 protocol, making on-chain participation metrics a key gauge of adoption progress.

Whale Accumulation and User Growth Underpin Recovery

Large Cardano holders continue to expand their positions even as ADA trades below major resistance levels. Data shared by Ali Martinez, citing Santiment, shows that wallets holding between 1 million and 10 million ADA steadily increased their balances from roughly 5.63 billion ADA to 5.69 billion ADA over the past two weeks.

More than 30 million $ADA have been accumulated by whales over the past week. Large Cardano holders appear to be positioning for the next move. pic.twitter.com/2TEOrjp7Ac — Ali Charts (@alicharts) July 22, 2026

This accumulation of more than 30 million ADA suggests that whales are positioning for a larger move rather than reducing their exposure. Historically, sustained buying from major holders has often reflected growing confidence in an asset's medium-term outlook. Such accumulation trends are widely tracked across digital asset markets, as concentrated buying by large addresses has at times preceded periods of increased volatility.

Meanwhile, Token Terminal data shows that daily active users on the Cardano network nearly doubled to 15,100, compared with approximately 7,800 earlier this month. Higher user participation strengthens on-chain fundamentals and complements the continued whale accumulation. The growth in active users comes as Cardano competes with other Layer 1 networks — including Ethereum, Solana, and Avalanche — to attract developers and decentralized application usage, a factor that often influences long-term token demand.

Cardano Faces Key Resistance Despite Improving Momentum

Despite stronger fundamentals, Cardano's price remains within a consolidation range. ADA continues to trade below the 50-day EMA near $0.177 and a descending resistance trendline around $0.1782.

Technical indicators remain cautiously constructive. The MACD histogram has stayed slightly positive, while the RSI near 52 signals neutral momentum. A sustained move above the resistance zone could open the path toward the next major target around $0.2205.

On the downside, immediate support sits near $0.1629, followed by a broader support level around $0.1486. As Cardano tests these technical levels, whale accumulation and improving network activity remain closely watched indicators for traders.