Cardano Price Drops 15% as Whales Sell 110 Million ADA

Cardano (ADA) price has plunged 15% over the past seven days, trading at $0.233 as growing whale selling pressure, declining network activity, and bearish futures positioning weigh on market sentiment. Technical indicators also suggest that ADA could face further losses if crucial support levels fail to hold.

According to crypto analyst Ali Martinez, large Cardano holders have offloaded more than 110 million ADA since October 8. The substantial selloff comes alongside weakening blockchain activity, raising concerns about investor confidence despite recent network upgrades designed to support tokenization.

Cardano's daily active addresses have fallen sharply from 27,248 to 15,977, representing a 41.36% decline. The decrease indicates reduced network participation as major investors continue reducing their holdings.

However, Cardano's decentralized finance ecosystem has shown some resilience. Data from DeFiLlama reveals that total value locked (TVL) increased from 257.43 million ADA on October 6 to 279.88 million ADA, reflecting growth of 22.45 million ADA within approximately one week.

Meanwhile, derivatives market data points to continued bearish sentiment. According to CoinGlass, Cardano recorded approximately $342 million in long trading volume over 24 hours, compared with $383 million in short volume.

The ADA long-to-short ratio has also declined to 0.86, remaining below 1 since October 5. This suggests that bearish positioning continues to dominate the futures market, although excessive short exposure could potentially fuel a short squeeze if prices rebound unexpectedly.

From a technical perspective, Cardano has slipped below its 200-day exponential moving average (EMA), a key indicator used to assess longer-term price trends. The cryptocurrency is currently testing this former support level as resistance.

A successful recovery above the 200-day EMA could strengthen bullish momentum and potentially push ADA toward $0.27.

Despite the recent decline, Cardano remains within an ascending price channel established in late June. However, its movement below the channel's midpoint and weakening Awesome Oscillator (AO) readings indicate fading buying momentum.

The immediate support level stands at $0.23. A decisive breakdown below this threshold could accelerate selling pressure and expose ADA to further losses toward $0.20.

For now, Cardano's price outlook remains uncertain as investors monitor whale transactions, network activity, and futures positioning for signs of a potential recovery.