Currently trading at $1, Cardano (ADA) remains a far cry from its all-time high of $3.09, as it struggles within a narrow trading range. Despite a 3.38% gain in the last 24 hours, ADA has experienced a 9.62% decline over the past week, reflecting a decline in user engagement and market sentiment.
Market data highlights a significant factor behind ADA’s recent struggles: whale activity. In the past week alone, large investors have offloaded over 180 million ADA, contributing to the downward pressure on the token’s price. According to Santiment data shared by analyst Ali Martinez, there is a notable correlation between ADA’s price action and whale holdings.
Whales have sold more than 180 million #Cardano $ADA over the past week! pic.twitter.com/IMdo12bcgE
— Ali (@ali_charts) January 24, 2025
Throughout December 2024, ADA saw a dip from $1.12 to below $0.90. However, during this period, whale wallets holding 100 million to 1 billion ADA maintained stable balances, suggesting that larger investors were not eager to make drastic moves. Fast forward to January 2025, when ADA fluctuated below $1, with whale holdings below 3.34 billion ADA.
A noticeable shift occurred between January 3 and January 14, when ADA surged from $0.85 to over $1.10. During this rally, whale holdings increased from 3.2 billion to 3.5 billion ADA. However, after ADA peaked at $1.16, it quickly retreated to $0.99, and whale holdings dropped significantly, from 3.5 billion ADA to 3.32 billion ADA. This sharp reduction of over 180 million ADA tokens further emphasizes the negative sentiment surrounding Cardano’s price trajectory.
Supporting this trend, IntoTheBlock’s ownership data reveals that whale holdings dropped by 1.68%, while mid-sized investors and retail traders increased their stakes by 1.60% and 0.72%, respectively. This broadening of market participation could indicate confidence but may also introduce volatility if these investors decide to exit their positions amid ongoing price fluctuations.
As Cardano’s whales continue to reduce their stakes, the market faces sustained bearish pressure, with large holder netflows declining by 90.29% in the past seven days. If this trend persists, ADA’s path to recovery could remain uncertain.
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.
Also Read: Cardano (ADA) Poised for Bullish Breakout: Key Levels to Watch as Price Tests $1 Resistance
About The Author
