Cardano (ADA) Whales Reduce Their Exposure as Bearish Trend Grows With Price Below Key Indicator

Cardano's lackluster performance has prompted its largest holders to reduce their trading activity over the past week. On-chain data reveals that ADA whales have gradually distributed their holdings over the past seven days.

Cardano’s largest holders have been reducing their trading activity over the past week, according to on-chain data.

These ADA whales, as they are known, have gradually distributed their holdings over the past seven days, with the netflow of large holders plunging by 90% during this period.

This metric, which tracks the net movement of tokens to and from large holder addresses, indicates that these major investors are either selling off their holdings or refraining from accumulating more, reducing their overall market influence.

The dwindling activity of ADA whales comes amid a growing bearish bias against the altcoin.

This is evident in the rising demand for short positions in the coin’s futures market, which is indicated by ADA’s negative funding rate of -0.005%.

This suggests that traders are increasingly betting against the asset, which could amplify downtrends if the trend continues.

ADA’s price has been struggling to break above a key technical indicator, which is also contributing to the bearish outlook.

The coin remains below the red line of its Super Trend indicator on the daily chart, indicating that selling pressure dominates the market.

If the selloffs persist, ADA’s price will extend its decline and fall to $0.70.