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Key Takeaways:
- Super whales cut ADA holdings amid a 40% drop in network activity.
- Retail continues accumulating despite rising short interest.
- Key support at $0.68–$0.71 could decide the next major price swing.
A battle is brewing in Cardano’s market structure as three major forces—super whales, retail holders, and derivatives traders—pull ADA in different directions. On-chain signals and derivatives positioning point to a pivotal moment that could soon determine the token’s next major move.
Super Whales Exit as Network Activity Declines
According to Santiment data, Cardano’s largest holders—wallets with over 1 billion ADA—have reduced their holdings from 5.43% in late June to 5.02%. While this 0.41% decrease may appear small, the scale of holdings makes it significant, signaling a bearish tone among major players.
The sell-off coincides with a 40% plunge in active Cardano addresses since July 18, when they peaked at 42,000. This drop in user activity may be one of the reasons whales are reducing exposure, adding pressure to ADA’s already fragile price structure.
Retail Traders Stay Bullish Despite Mounting Short Pressure
Contrary to the whales, retail investors appear unfazed. Exchange netflows remain negative, indicating that more ADA is being withdrawn than deposited—a classic sign of accumulation. This long-term bullish behavior reflects retail confidence in Cardano’s future, even as price dips.
However, data from Bitget’s liquidation map shows a strong tilt toward bearish bets in the derivatives market. There’s currently $141.7 million in ADA short positions compared to just $74 million in longs, suggesting that leveraged traders expect further downside.
Crucial Support Levels Will Determine the Next Move
ADA is now hovering around key support levels at $0.71 and $0.68. If these levels break, prices could drop to $0.62, triggering significant liquidations of long positions. On the flip side, if bulls reclaim $0.73 and push above $0.78, a short squeeze could unwind bearish positions and potentially drive ADA back toward $0.84 or even $0.93.
Also Read: Cardano (ADA) Eyes $4 as Breakout Momentum Builds
With market sentiment divided and short interest climbing, a decisive move—either a breakdown or a squeeze—may soon decide the direction of Cardano’s price in August.
Cardano’s price action is caught in a three-way tug-of-war. While super whales sell and short traders bet against it, retail holders remain resilient. Whether short sellers can break ADA support—or get squeezed out by a bullish reversal—will likely define the coming weeks.
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 Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
