Cardano’s price forecast: Whale activity and DeFi metrics signal early recovery
January 3, 2026
Cardano’s native token, ADA, saw an increase in value by almost 8% in a single day, surpassing the $0.37 mark and emerging as one of the top-performing major altcoins of the day. This positive movement comes after a challenging month in December during which ADA experienced a nearly 20% decline, reflecting a wider trend of weakness across the cryptocurrency market.
The recent upturn seems to be supported by a resurgence in activity from large investors as well as improvements in on-chain fundamentals. While short-term price fluctuations are still tied to overall market conditions, data suggests that sentiment surrounding Cardano is beginning to stabilize. In particular, there has been renewed interest from large holders, commonly known as whales, as evidenced by increased buying activity reflected in spot and derivatives data. This indicates that institutional or high-net-worth investors may be re-entering the market and accumulating positions.
Analyzing the data further, CryptoQuant’s on-chain metrics suggest that selling pressure is diminishing, with whale accumulation being seen as a positive signal of confidence. Additionally, network activity on the Cardano blockchain has shown signs of improvement, with higher transaction volumes and increased wallet interactions indicating actual usage rather than speculative holding.
The decentralized finance (DeFi) sector within Cardano’s ecosystem is also displaying signs of growth, with total value locked in Cardano-based DeFi protocols rising by approximately 4% in the past 24 hours to around $178.9 million. This increase in TVL is often seen as a reflection of user trust and confidence in the platform, as it represents capital being committed to various DeFi activities.
Despite ADA’s market structure being within a declining price channel for some time, analysts note that it has managed to stay above the $0.35 support level, which has prevented further declines. Technical analysts are closely monitoring ADA’s movement within this channel, as it could indicate a potential breakout in the near future.
Overall, Cardano’s recent price performance highlights the impact of on-chain behavior and ecosystem engagement on market sentiment, even in uncertain times. For both investors and developers, monitoring whale participation and DeFi metrics will be crucial indicators moving forward to gauge the platform’s strength and potential growth.
