Cardano (ADA) Faces Downward Price Pressure as Whales Offload Millions of Tokens

Cardano (ADA) price today reflects a -7.39% decline over the last 24 hours and a -5.37% decrease over the past week, trading at $0.9144 at press time.

With a circulating supply of 36 billion ADA, its market cap is approximately $32.73 billion, per Coingecko data.

Recent market activities and trading data suggest mixed signals for the cryptocurrency, raising questions about its near-term outlook.

Trading Volume and Open Interest Trends

Cardano has seen a sharp drop in trading activity over the past 24 hours. According to Coinglass, ADA’s trading volume has decreased by -30.25%, totaling $2.28 billion. Open interest in futures contracts has also declined by -8.02%, bringing the current figure to $1.09 billion.

These changes may indicate a period of profit-taking by traders or a pause in market activity after a year of steady growth in open interest, which peaked in late November and December.

Additionally, options volume has fallen by -92.94%, standing at $6.59K, while options open interest is marginally down by -0.27% at $374.92K.

Whale Activity Sparks Concerns

Recent reports from X user Ali Martinez reveal that whales have offloaded over 70 million ADA tokens within the span of 48 hours. Large-scale selling by major holders can increase the circulating supply, leading to downward price pressure if demand remains stagnant.

Whales sold over 70 million #Cardano $ADA in the last 48 hours! pic.twitter.com/dJWRG4shhN

This sell-off comes at a time when smaller investors may feel discouraged, potentially triggering further sell-offs. Such actions often disrupt short-term price stability and create challenges for maintaining bullish momentum.

Bullish Predictions and Development Plans

Despite the recent price decline, some analysts and influencers remain optimistic about Cardano’s long-term potential. Dan Gambardello, an X user, stated that ADA has “one of the most bullish weekly pattern setups in crypto,” referring to an inverse head-and-shoulders pattern with an upward-sloping neckline.

Gambardello suggested this setup could drive the token to a price of $7 if a breakout occurs.

Additionally, Altcoin Daily predicted earlier this year that ADA’s value might reach $6.45 by 2025. However, they emphasized caution, noting that “any altcoin can theoretically go to zero at any time” and advised investors to only risk funds they can afford to lose.

Cardano’s roadmap for the next 12 months includes key updates and developments that could influence price action. Investors are keeping an eye on these advancements to gauge their impact on the token’s value and utility in the blockchain ecosystem.

Decline in Wallet Activity

Data from Santiment shows that ADA’s active wallets over the past 30 days are in a negative range, suggesting reduced user engagement.

However, the analytics firm observed that professional traders often take advantage of such dips to accumulate positions, potentially stabilizing the market in the medium term.

As the market responds to these various factors, the coming weeks may determine whether Cardano can recover its recent losses or face additional downward pressure.

FAQs:

Cardano (ADA) is currently trading at $0.9144.

ADA’s price dropped due to whale sell-offs, reduced trading volume, and decreased wallet activity.

Cardano’s market cap is approximately $32.73 billion.