Cardano Faces Selling Pressure From Whales
Whales are selling more and more Cardano, which is pushing the price of ADA below $0.82. This drop came after the trendline that had been supporting gains since July broke down. The move suggests that more correction may happen in the near future.
Analysts say that bulls need the price to go back above $0.84 to feel good about themselves again. People in the market say that breaks in trendlines often change people’s minds quickly and make prices more volatile for both retail and institutional investors.
Dormant Wallet Activity Adds Selling Pressure
On-chain data shows that Santiment’s Age Consumed index has gone up and down, which has happened before Cardano prices fell. Dormant wallets are sending tokens to exchanges, which could cause selling pressure. These changes show that long-term holders are looking for cash in a market that is getting weaker.
This kind of wallet activity usually happens during distribution phases, which is a warning sign for ADA traders. Analysts say that dormant wallet movement is usually one of the first signs of capitulation, which happens before accumulation starts up again.
Whale Addresses Sell 560 Million ADA Worth $500 Million in Four Days
In just four days, whale addresses sold more than 560 million ADA, which is worth $500 million. This sell-off shows that big holders are impatient and don’t want to wait for prices to go up more slowly. These huge exits can make retail demand too high and speed up declines.
Still, whales own a lot of ADA overall. Analysts say that whales selling for a long time can often delay bullish recovery phases, leaving retail traders to temporarily stabilize prices without enough long-term conviction.
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Technical Indicators Show Bearish Momentum
The daily chart shows that ADA closed below $0.84 after a 6.1% drop, which adds to the bearish momentum. The RSI has dropped to 40, which means it is weak, and the MACD confirms a bearish crossover. ADA could test $0.76, a key retracement level, if the downward pressure keeps up.
Bulls will probably protect this area to keep the slide from going any deeper. In the past, price action near Fibonacci retracements has been very important for Cardano’s short-term recovery and its position in the market against other altcoins.
Retail Buyers Defend Support Levels
Even though whales have left, ADA has stayed above $0.88, which shows that retail investors are taking on selling pressure. This strength shows that smaller traders are coming in to keep prices steady. In the past, retail support has been a key part of ADA’s market cycles that have led to recoveries.
This kind of participation might put off bigger problems. Analysts say that people keep buying Cardano because they believe in its fundamentals. However, limited liquidity could still keep major rallies from happening in the near future.
RSI Recovery and Whale Interest Could Strengthen Cardano’s Bullish Case
There is a bullish continuation pattern forming below the $0.95 resistance level in the shape of an ascending triangle. If ADA breaks through this resistance, it could go up to $1.20-$1.25. Bollinger Bands showing room for growth and Supertrend turning bullish are two things that support this.
The RSI recovery also helps momentum. Analysts say that confirmation above $0.99 would make this bullish case even stronger and could bring back whale accumulation and institutional interest in ADA’s technical breakout setup.
Cardano Declines Toward $0.81 as On-Chain Participation Remains Weak
Cardano is trading at $0.81, which shows that it is still correcting after breaking trendline support. There are still not many active addresses, which means that on-chain participation is low. If the decline keeps going, ADA could drop to $0.837, which would expose it to even more downside risks.
On the other hand, a recovery above $0.95 could start a big rally. Analysts say that ADA’s future depends on whether retail support can outpace whale selling. This is a key situation for traders as they deal with upcoming volatility.
