Whales have driven the current bearish outlook for ADA. Data shows that addresses holding between 1 and 10 million ADA sold over 560 million tokens in just four days. With a value close to 500 million dollars, this strong liquidation reflects a clear lack of conviction among large investors.
This activity highlights the impatience of whales, who seem unwilling to wait for Cardano's slow ascent to $1. Instead, they are securing profits now to minimize exposure to potential downward risks.
The macroeconomic momentum of Cardano is still concerning, especially because investment activity shows signs of exhaustion. The number of active addresses remains low, indicating decreasing participation in network activity.
When network participation is low, price action often struggles to gain momentum. With fewer operators participating, capital inflows stagnate, limiting ADA's ability to generate a significant rally. Unless on-chain activity recovers, Cardano's overall momentum is likely to remain moderate.
The price of Cardano is at $0.888, remaining slightly above the support of $0.880. However, the current environment suggests a risk of losing this critical level if bearish sentiment intensifies. Vulnerability to the downside remains evident as whale selling persists.
If ADA falls below $0.880, the next key support is at $0.837. A drop to this level would extend recent losses and could trigger further liquidation by small holders, creating increased downward pressure. This could hinder ADA's recovery.
On the contrary, a successful rebound from $0.880 could open a short-term rally towards $0.931. Turning this resistance into support would improve market confidence, allowing ADA to reach $0.962. Overcoming this barrier would invalidate the bearish thesis and bring Cardano closer to $1.
