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