ADA is among the top fallers last week, but this signal indicates the potential to bounce back.

Cardano (ADA) struggled over the past week. The price of this altcoin fell by more than 7% and became one of the sharpest decliners in the market during the week.

The price of ADA has fallen sharply after a significant change in market structure. Specifically, this altcoin has broken the upward trend line – a support line that has been maintained since April 7. This breakout move indicates weakness and shifts traders' sentiment from optimistic to pessimistic.

The changes in the market structure have led to selling pressure, giving the bears the upper hand.

However, the correction has brought ADA back to an important demand zone — a place that previously served as a strong support zone and attracted significant buying power.

Source: TradingView## Whale activity shows signs of accumulation

On-chain data analysis from CryptoQuant shows that whales have begun to make large buy orders as ADA approaches the important support zone.

A sudden increase in whale activity as the price tests this support zone indicates strong interest from investors at the current price level, signaling the potential formation of a price base for a trend reversal.

Currently, the demand zone is becoming the focal point and buyers seem to have the upper hand. ADA has recovered about 3% in the past 24 hours as of the time of writing. This could be an early sign that buying pressure is increasing.

Whale accumulation in this area is often a positive signal in the medium term. If demand continues to rise, ADA may attempt to recover more strongly.

However, the long-term trend can generally remain positive, especially if Bitcoin and the entire market continue to maintain their upward momentum.

Source: CryptoQuant## Will ADA recover or continue to fall deeply?

The current support area is still maintaining its price, but the support level is quite weak. If the bulls do not take advantage of this recovery momentum, ADA may face a new sell-off and fall even further.

On the contrary, if buying pressure continues to be maintained (especially from large wallets), a strong rebound could occur.

Traders and investors are waiting for the emergence of a higher low along with ADA reclaiming the broken trend line. That will be a confirming signal for the possibility of a trend reversal. Until then, ADA remains in a sensitive zone where market sentiment can shift in any direction.

With long orders from whales and recent highs showing initial strength, the next few days will be decisive. If the demand zone continues to hold, ADA could transform itself from one of the week's sharpest decliners to a short-term recovery candidate.

Minh Anh