Cardano (ADA) is struggling to break through the key psychological barrier of $1. Despite earlier bullish optimism, the altcoin is facing intense selling pressure from its largest holders, creating a significant roadblock for its price recovery.
This whale activity is undermining investor sentiment and adding to the downward pressure on ADA’s price.
Cardano Whales Drive the Sell-Off
Data reveals that Cardano’s whale addresses have been leading the recent bearish charge. Specifically, wallets holding between 1 million and 10 million ADA have offloaded a massive 560 million tokens in just four days.
This sell-off is valued at nearly $500 million and signals a clear lack of conviction among Cardano’s biggest investors. It appears these whales are growing impatient with ADA’s slow grind upward and are choosing to secure gains now rather than risk a potential downturn.
On-Chain Activity Shows Fatigue
The whale exodus is part of a broader concerning trend: waning network activity. The number of active addresses on the Cardano network remains low, indicating that overall participation and engagement are declining.
This is a critical metric because muted on-chain activity often leads to stagnant price action. Simply put, fewer users transacting means less new capital flowing into the ecosystem, making it incredibly difficult for ADA to stage a sustainable rally.
ADA Price Analysis: Key Levels to Watch
At the time of writing, ADA is trading at $0.888, hovering just above crucial support at $0.880.
The path forward depends entirely on whether this support holds.
- Bearish Scenario: If selling pressure intensifies and ADA breaks below $0.880, the next major support level sits at $0.837. A fall to this level could trigger panic selling from smaller investors, creating a vicious cycle of further downside.
- Bullish Scenario: If buyers successfully defend the $0.880 support, ADA could stage a short-term rebound toward $0.931. A decisive break above this resistance could improve market sentiment and open the door to retest $0.962, putting the coveted $1 target back within reach.
For now, the actions of large holders continue to dictate Cardano’s near-term fate, and their recent moves suggest a cautious and bearish outlook.
