Cardano Whales Spark Sell-Off – What’s Next for ADA’s Price?

Cardano (ADA) has been grappling with declining prices, fueling fears that it might further the decline below the $1 threshold.

The downturn appears to stem from increased sell-offs by large holders, commonly referred to as whales, aiming to capitalize on previous price surges.

A wave of selling activity by major investors has significantly impacted ADA’s momentum. Reports from Santiment reveal that entities holding vast ADA reserves—between 100 million and 1 billion tokens—have sold roughly $200 million worth over the past week. This trend reflects waning confidence and has amplified pressure on the broader market. The sell-off risks sparking a domino effect as smaller investors react to the turbulence.

The recent market behavior suggests profit-taking is also playing a crucial role. Positive profitability metrics have incentivized investors to cash out, adding to the selling frenzy. Analysts note that ADA’s Network Realized Profit/Loss data indicates sustained profit-taking over the last week, compounding the downward pressure.

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On-chain analyst Ali Martinez pointed out key shifts in whale activity. After ADA’s price climbed to $1.33, whales locked in profits, driving the price down to $0.91. Interestingly, these large holders have resumed buying at lower prices, accumulating 160 million ADA during the dip. Additionally, whale transactions exceeding $1 million surged to nearly 700 in a single day.

Despite the sell-off, a notable increase in mid-sized ADA wallets—holding between $1 million and $10 million—offers a glimpse of optimism. This category has grown by over 67% in the past month, outpacing other segments. Yet, market sentiment remains divided, balancing between bullish accumulation and bearish selling activity.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.