A crypto analyst says deep-pocketed investors are snapping up the top layer-1 platform Ethereum (ETH) amid the marketwide digital asset correction.

Trader Ali Martinez tells his 132,900 followers on the social media platform X that whales gobbled up more than $815.514 million worth of ETH in less than a week.

“Whales have bought more than 420,000 Ethereum ETH in [five days]!”

Martinez is also keeping a close watch on Ethereum’s In/Out of the Money Around Price (IOMAP) metric – which classifies crypto addresses as either profiting, breaking even, or losing money – to determine support and resistance levels for ETH.

According to Martinez, ETH is currently trading in a narrow range between stiff support and resistance zones.

“Ethereum ETH key levels to watch! On-chain data reveals $1,870 as the strongest support and $2,050 as its toughest resistance!”

At time of writing, ETH is trading for $1,941.

Turning to Bitcoin (BTC), the trader believes that the crypto king is poised to witness tactical rallies after breaching the horizontal resistance of an ascending triangle pattern.

“Bitcoin BTC is breaking out! The target is $90,000 as long as the $84,000 support holds.”

An ascending triangle pattern may be considered a bullish reversal structure if the asset soars above its horizontal resistance.

At time of writing, Bitcoin is trading for $84,288.

Turning to Ethereum rival Cardano, the analyst predicts rallies for ADA if the altcoin takes out the diagonal resistance of a triangle pattern at around $0.75.

“Cardano ADA is about to break free! Busting out of this triangle will trigger a 15% price move.”

A triangle is typically viewed as a consolidation pattern as it signals a potential breakout in either direction. The asset is considered bullish if the price moves above the diagonal resistance and bearish if it tumbles below the diagonal trend line.

At time of writing, ADA is worth $0.744.

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Trading volumes for Cardano’s ADA token have exploded of late with daily figures averaging around $720 million in February while exceeding an average of $1.4 billion in March.

This rise was spurred by a social media post by U.S. President Donald Trump, who mentioned ADA as one of the tokens that would be included in the nation’s strategic crypto reserve.

Although Cardano is enjoying its moment of mainstream attention, the layer-1 blockchain has been quietly emerging as a crypto juggernaut since it went live in late 2017.

Adoption metrics

The ADA token has a market cap of $25.6 billion but what’s more notable is what’s under the hood; data from Google shows that the Cardano blockchain has more than 5 million unique wallets and 1.3 million delegators, with thousands of new wallets being created per day.

The blockchain also has $329 million in total value locked (TVL), although Cardano Foundation CEO Frederik Gregaard believes that metric is overemphasized by crypto communities.

Instead, he points to “non-value transactions” associated with people conducting real-world – albeit non-financial – activities on blockchain rails: Minting a decentralized ID, tracking metadata, recording documents, that sort of thing. Cardano’s a hotbed of such activity, he said.

“I’m fighting to ensure that 50% of the activity is a non-value transaction,” Gregaard told CoinDesk.

One example of this is Cardano’s partnership with Veritree, which saw the Cardano community donate over 1 million ADA tokens to plant 1 million mangrove trees in Kenya, with each donation verified and tracked on the blockchain.

Last week, the Cardano Foundation also announced a deal with SERPRO — Brazil’s largest state-owned IT company – to accelerate blockchain adoption in South America. SERPRO processes 33 billion transactions annually for 90% of Brazil’s federal administration. Additionally, 8,000 employees will also receive blockchain training.

Cardano’s perspective differs from the likes of Solana and the slew of layer-2 networks like Base that pride themselves on total value locked (TVL) and hype-driven movements like memecoins and non-fungible tokens (NFTs).

TVL on Solana grew from $2.2 billion to more than $10 billion in 2024, Cardano meanwhile zipped from a modest $445 million to $537 million in the same period.

DeFi on Cardano

Whilst Cardano Foundation’s CEO said his focus is on real-world use cases, the blockchain still boasts a bustling DeFi ecosystem under the surface.

Minswap is Cardano’s native decentralized exchange (DEX). Its cumulative trading volume hit $3.4 billion this month with December alone notching a near-record $271 million, DefiLlama data shows.

There are also a number of lending protocols including Liqwid, Lenfi and Optim Finance, with TVL across Cardano’s lending sector exceeding $116 million.

But the key part of Gregaard’s mission, he insists, is not to exceed that 50% level for financialized transactions. He sees it as staying in line with the Cardano Foundation’s non-profit ethos, even if it limits potential exponential growth of hype-fueled movements like memecoins.

Cardano Foundation vs Hoskinson vs Emurgo

Fulfilling that ethos has its own challenges, mostly because the blockchain is run by three main entities: the Cardano Foundation, Charles Hoskinson’s IOG and Emurgo. The latter two are commercial businesses, which can cause friction between them and the foundation.

“The intent of having a non-profit was that you can optimize decision-making based on 10 years, it’s different than if you optimize decision-making tomorrow,” Gregaard added.

Some of the friction was highlighted by an anonymous Cardano community member in December, who penned an email on a path forward and detailed how the entities running Cardano were at loggerheads.

“CF’s recent burst of activity is part of a larger strategic play—an attempt to undermine Charles, IOG, Intersect, and the broader governance roadmap,” the email read.

“It’s been a long and difficult road, but I do agree with some of the sentiments of the whistleblower,” Hoskinson wrote in response on X.

Gregaard, however, was more diplomatic about any potential rift.

“There’s no monetary exchange going on between us, but we do work very closely together,” he said.

“We sometimes go to [a conference] and we share a booth. So we come together and we sponsor booths together, that’s the closest you will get to any affiliates, which is very different compared to both the Ethereum foundation or Tezos foundation, where they basically control the Treasury and control the disbursements.”

“On the flip side, we [Cardano Foundation] are the liability umbrella for the community and the blockchain, which means that we are the one who interacts with the SEC and the CSDC and the FMA, and I negotiated MICA with the European Parliament.”

Cardano (ADA) has been caught in massive volatility and extreme price swings, making it one of the most unpredictable assets in the crypto market. Following US President Donald Trump’s announcement of a US Strategic Crypto Reserve, which included Cardano, ADA’s price skyrocketed over 80% in less than a day, fueling speculation about its long-term role in institutional adoption.

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However, the excitement was short-lived, as negative macroeconomic sentiment and fears surrounding global trade wars triggered a sharp 35% decline within just two days. As uncertainty grips the financial markets, traders remain cautious about whether ADA can regain momentum or if more downside is ahead.

Despite the recent sell-off, top analyst Ali Martinez shared a technical analysis suggesting that Cardano remains positioned for a potential surge toward $10. According to his insights, bulls must reclaim key technical levels for a strong recovery, with ADA still showing bullish potential despite short-term weakness.

With Cardano’s price action at a critical point, the coming days will be crucial in determining its next move. If bulls can stabilize ADA above key support, the potential for another explosive rally remains on the table.

Cardano Could Start A Massive Move

Cardano (ADA) has been overperforming compared to the broader crypto market over the past week, showing relative strength despite ongoing volatility. However, price action remains confined within a range that first began forming in November 2024, preventing a clear breakout in either direction.

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If bulls can hold the current levels, ADA could soon attempt a push above multi-year highs, setting the stage for a significant bullish move. However, analysts remain cautious as prices are still low, and investor sentiment remains fearful amid macroeconomic uncertainty and trade war tensions. Many traders are waiting for confirmation of a breakout, as momentum has yet to fully shift in favor of the bulls.

Martinez’s technical analysis on X reveals that Cardano is still positioned for a potential surge toward $10. According to Martinez, for this bullish scenario to unfold, ADA must maintain support above $0.80 while successfully breaking through the key $1.20 resistance level. These price points serve as crucial pivot zones, and their validation or failure will likely determine Cardano’s short-term trend.

The next trading sessions will be crucial, as a break above $1.20 could trigger a strong upward move, while failure to hold above $0.80 could lead to further downside risk. With ADA currently at a pivotal moment, traders are closely monitoring price action to gauge whether bulls can regain control or if continued consolidation is ahead.

Price Action Details: Technical Analysis

Cardano (ADA) is currently trading at $0.80 after failing to hold above the key $1 level. Despite recent strong performance compared to the broader market, ADA has struggled to maintain bullish momentum, leaving traders uncertain about its next move.

For bulls to regain control, ADA must reclaim the $1 mark and push above the critical $1.17 resistance level. A break and hold above this zone could trigger a massive rally, potentially sending Cardano to multi-year highs. Such a move would signal renewed buying interest, boosting confidence among investors and traders who are watching ADA’s long-term potential.

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However, failure to break above $1 and hold the crucial $0.80 support level could expose Cardano to further downside risk. A breakdown below $0.80 would likely send ADA into lower demand zones, extending its consolidation phase and delaying any significant recovery.

Featured image from Dall-E, chart from TradingView