"ADA's 18% Plunge: Whales Flee, Confidence Wanes"
1min read Cardano's 18% slump and falling whale activity have raised concerns about the cryptocurrency's future trajectory. The price of ADA has dropped by 18% over the past week, coinciding with a significant reduction in whale activity. The number of whale addresses, holding between 1 million and 10 million ADA, has plummeted to its lowest level since early January, signaling weakening market confidence.
This combination of falling price and diminishing whale interest raises questions about Cardano's future. The daily chart of ADA shows a lack of strong support, with lower highs and lower lows reinforcing bearish sentiment. The Relative Strength Index (RSI) sits at 36.37, teetering just above the oversold zone, indicating weakened buying pressure but leaving room for a potential short-term bounce. However, the On-Balance Volume (OBV) continues to decline, reflecting sustained sell pressure and weak accumulation.
Beyond technical weakness, external factors have exacerbated ADA's decline. A $1.5 billion hack at Bybit in February 2025 rattled investor confidence, triggering broader market sell-offs that may have intensified ADA's losses. Meanwhile, a sharp drop in whale activity has added to market instability, as large holders play a crucial role in price movements. On the regulatory front, the SEC's acknowledgment of a Cardano ETF proposal has introduced uncertainty, with approval potentially driving long-term institutional adoption but also fueling short-term volatility.
The decline in whale addresses is a sign of weakening confidence in ADA's near-term prospects. Large holders are either reducing their positions or hesitating to accumulate, signaling a lack of faith in the cryptocurrency's immediate future. Whale activity is a critical indicator of market sentiment, and their decreasing presence could exacerbate volatility, making ADA more susceptible to further downside pressure. If whales continue to retreat, ADA may struggle to establish strong support levels, reinforcing the current bearish trend. However, a resurgence in whale accumulation could indicate renewed confidence and a potential shift in momentum.
If the decline in whale addresses marks the beginning of a broader trend, it could have significant long-term implications for Cardano. Reduced whale participation may lead to lower liquidity, making the asset more vulnerable to sharp price swings. Additionally, sustained selling pressure from large holders could deter institutional interest, limiting ADA's upside potential. However, if smaller investors 