Cardano (ADA) traded higher on Thursday after a sharp recovery, putting the token back in the spotlight among major altcoins.
Over the past week, the asset has surged by nearly 24%, making it one of the strongest performers in a market that has otherwise struggled with uneven momentum and cautious investor sentiment.
However, the rally has been marked by an unexpected shift, with ADA’s price moving higher while active holder numbers continue to decline.
According to popular analytics platform Santiment, Cardano recently reached around $0.204 for the first time since early July, with its market capitalization rising 24% over the past week. The platform noted that the move stands out because it has happened while many retail participants remain hesitant to return.
Santiment data showed that Cardano has lost approximately 7,070 non-empty wallets over the last two months, suggesting that some previous holders have stayed on the sidelines despite the recent price recovery.
 
Meanwhile, the declining holder count, combined with rising prices, could indicate that stronger buyers are absorbing available supply rather than that the rally is being driven purely by retail enthusiasm.
Beyond price action, Santiment also pointed to ongoing ecosystem developments as another factor supporting Cardano’s recent recovery.
Progress on initiatives such as Leios, Hydra improvements, Mithril upgrades, Pyth integration, and Catalyst funding has continued to support Cardano’s long-term outlook. These developments have provided additional support for investors watching whether ADA can transition from a recovery phase into a broader expansion cycle.
Notably, whale activity has also played a role in Cardano’s recent surge.
Additionally, popular analyst Ali Martinez highlighted Santiment data showing that large investors accumulated over 240 million ADA within five days, helping drive a 22% increase in ADA’s price during that period.
The accumulation trend suggests that some larger market participants may be positioning ahead of potential future growth. Historically, significant whale buying during periods of weak retail confidence has often been viewed as a sign that long-term investors are taking advantage of discounted prices.
According to analyst Crypto Patel, ADA has returned to a historical demand zone between $0.15 and $0.086, an area that previously saw strong accumulation ahead of Cardano’s major 2020-2021 rally.
The analyst suggested that the current price structure could represent a macro accumulation phase rather than a confirmed breakout, with key resistance levels still ahead.
However, ADA still has several hurdles to clear before confirming a broader trend reversal. Patel identified $0.2887 as a key bullish level, while a move above $0.50 could strengthen the case for a longer-term uptrend.
At press time, ADA was trading at $0.2044, reflecting a 7.32% gain over the past 24 hours.
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