The inflow of funds into Cardano has reached a three-month high, but profit-taking activity from "whales" may be holding back the bounce back.

The price of Cardano (ADA) is struggling to bounce back despite strong participation from investors following the recent market recovery.

While retail investors continue to show confidence, a concerning trend has emerged among whale investors. Steady selling pressure from this group could pose potential risks to the short-term bounce back prospects of ADA.

Cardano investors still hold hope

The Chaikin Money Flow index (CMF) of Cardano has recorded a strong increase, indicating that the capital flow into this asset is occurring positively. Currently at its highest level in the past three months, this suggests that investors are actively buying ADA at low prices following the market shock. Historically, spikes in CMF often indicate new accumulation phases, which typically occur before a bounce back.

Despite this positive development, the price of ADA has not yet reflected a significant increase. Strong buying pressure from smaller investors is being offset by selling activity from larger investors.

Cardano CMF Index | Source: TradingViewIn the past 24 hours, whale investors have been continuously dumping. Addresses holding between 10 million ADA and 100 million ADA have sold approximately 180 million ADA, equivalent to over 120 million dollars. Although this figure is not large compared to the total supply, the selling activity was strong enough to slow down the price bounce back.

Whale fluctuations often serve as an early indicator of sentiment changes, and the recent sell-off reveals a lack of confidence in short-term profits. Although the overall market is still absorbing the increasing influx of capital, ADA's failure to hold key levels could lead to continued selling pressure.

Cardano whales | Source: Santiment## ADA price may face pressure

Currently, the price of ADA is fluctuating above the support level of $0.66, but there is a risk of falling below this level if the downward momentum continues. A drop below this level could cause ADA to fall to $0.60 in the coming days.

The continued sell-off by whales could increase downward pressure, even as capital flows remain high. The ongoing profit-taking by large investors will make a sustainable bounce back more difficult.

Cardano price analysis | Source: TradingViewHowever, if ADA can maintain the level of $0.66 and attract new buying interest, this altcoin has the potential to rise above $0.69 and may reach $0.75. Such a move would invalidate the bearish outlook and mark the beginning of a short-term bounce back.

Mr. Giáo