ADA Price Teeters at $0.5912 as Whales Dump 170M Tokens

The price of ADA is teetering at $0.5912 at the time of writing on February 27, 2025, and it's been a brutal week with a jaw-dropping 26.04% drop

The price of ADA is teetering at $0.5912 as of February 27, 2025, and it’s been a brutal week with a jaw-dropping 26.04% drop over the past seven days.

Cardano whales have offloaded a massive 170 million ADA, slashing large-holder balances from 3.26 billion to 2.98 billion tokens. The sell-off coincided with ADA’s drop from $0.83 to $0.65, intensifying bearish sentiment.

Daily Active Addresses Plummet – Bad News for ADA?

Santiment’s Daily Active Addresses index is showing a sharp decline, with the number of active wallets on the Cardano blockchain plummeting from 49,585 in early February to just 24,609 last week.

This downward trend, which began around mid-January, could spell trouble for ADA. Lower on-chain activity means fewer transactions and less interest overall, which could put further downward pressure on the token’s price.

If demand continues to shrink, it might open the door for more Cardano whales to offload their ADA holdings, potentially leading to deeper losses for those who bought high during the recent bull cycle.

Could ADA Crash to $0.30 or Rally to $1?

Rose Premium Signals noted that ADA price is currently nearing the 0.786 Fibonacci retracement level from the recent swing high of $0.83 to a low of $0.65.

If buyers manage to defend the $0.65 support, bullish momentum could propel ADA toward $1 and beyond, with the premium indicator provider setting price targets at $1.214 and $1.398.

However, a breakthrough of this crucial level could quickly escalate into a broader sell-off. Failure to hold support at $0.65 might send prices spiraling toward $0.30, rapidly erasing recent gains and deepening the ongoing downtrend.

Meanwhile, Bleves Crypto suggests that if ADA follows its previous bull cycle’s Golden Ratio, it could eventually reach $8.06. However, this scenario seems far-fetched considering the current market trends and technical indicators.

Technical Indicators Are Flashing Red

The Relative Strength Index (RSI) has dropped to 27.73, testing oversold levels. This indicates that sellers have been in control for a sustained period. While an oversold RSI can sometimes signal an impending bounce, it’s not a guaranteed scenario.

ADA needs to push past 39.92 to suggest a shift in momentum. The 50-day and 200-day EMAs are located at $0.8093 and $0.7261, both of which are still above ADA’s price, which is currently trading at $0.5912.

This placement keeps both averages in bullish territory, although the 50-day EMA is on the verge of transitioning into bearish territory if it crosses below the 200-day EMA.

Moreover, the price action is forming a descending triangle, which is a bearish pattern that signals a continuation of the existing trend, at least until one of the trends manages to break out.

If ADA breaks out to the downside from this pattern, the next major support level to watch is around $0.50. A failure to hold this level could trigger a steeper decline, potentially setting the stage for a larger selloff.