Cardano (ADA) is currently consolidating near a critical support zone that could shape the direction of its price in the coming weeks. After a sharp 15% drop since Wednesday, ADA is showing signs of weakness as market sentiment deteriorates amid rising geopolitical tensions. The conflict between Israel and Iran has injected significant volatility and uncertainty into global markets, impacting the cryptocurrency landscape.
ADA's recent losses reflect this risk-averse environment, with investors becoming more cautious and liquidity decreasing. The inability to hold above key resistance early in the month has turned previous support levels into pressure points for optimistic investors. If ADA fails to defend its current range, new declines towards lower support zones could occur rapidly.
According to on-chain data from Santiment, Cardano whales have offloaded over 270 million ADA in the past week. This significant distribution increases selling pressure and suggests that large holders may be anticipating further losses or, at the very least, reducing exposure amid macroeconomic instability.
Whale activity and macroeconomic risks weigh on the price
Cardano remains one of the large-cap altcoins underperforming in 2025, currently trading 85% below its yearly highs and 107% below its peak from last year. Despite some short-lived recoveries, ADA has struggled to maintain momentum and attract sustained demand. The altcoin market, in general, has shown signs of weakness, with capital continuing to concentrate in Bitcoin and Ethereum, leaving ADA vulnerable at key support levels.
Analysts forecast a decisive movement as ADA consolidates in a critical price zone that could define the next weeks of movement. If bulls do not emerge, Cardano may experience new declines towards historical support levels. The situation is further complicated by global tensions and increasing macroeconomic uncertainty. Geopolitical instability — primarily the conflict between Israel and Iran — has triggered a risk-averse sentiment in global markets, driving volatility in cryptocurrencies.