Cardano (ADA) has experienced a significant shift in market dynamics over the past week, as large investors, or “whales,” offloaded over 100 million ADA. This massive sell-off has sparked concerns among traders, especially given ADA’s sluggish price response despite increased retail participation.
Whale Activity and Market Impact
On-chain data indicates that addresses holding between 1 million and 10 million ADA have substantially reduced their holdings. This selling pressure coincided with a downtrend in ADA’s price, which has dipped to $0.7046 at the time of writing.
Whales often influence short-term market trends, and their exit typically raises red flags. However, the continued rise in ADA’s total number of holders suggests sustained interest from retail traders, potentially counteracting some of the downward pressure.
Cardano’s price has struggled to break key resistance levels, maintaining a prolonged downtrend. The 50-day and 200-day Moving Averages (MAs) at $0.7646 and $0.8913, respectively, highlight a bearish outlook. A move above the 50-day MA could signal recovery, while a failure to hold current levels might push ADA toward $0.65.
The Relative Strength Index (RSI) currently sits at 43.61, indicating neutral momentum. While ADA is not yet oversold, further whale sell-offs could drive it lower.
Retail Traders Step In
Despite the whale exodus, the total number of ADA holders has surpassed 4.46 million. This growing retail accumulation suggests long-term confidence in Cardano’s ecosystem. Historically, such divergence between whale and retail activity has preceded major price movements.
![Cardano [ADA] holders](https://ambcrypto.com/wp-content/uploads/2025/03/Cardano-ADA-06.36.54-17-Mar-2025.png)
Will ADA Rebound or Decline Further?
For ADA to regain bullish momentum, it must reclaim the $0.75-$0.80 range. The next major resistance stands at $0.78, with a more definitive bullish signal emerging if the price surpasses $0.80. On the downside, losing support at $0.70 could accelerate declines toward $0.65.
Also Read: Grayscale’s Cardano ETF Filing Sparks ADA Price Surge and Investor Optimism
With whales exiting and retail traders stepping in, ADA remains at a critical juncture. Traders should closely monitor volume trends and key resistance levels to gauge the asset’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
