Cardano's ADA Drops 2.601% Amid Whale Distribution, New Tool Launch

Cardano's latest price was $0.6249, down 2.601% in the last 24 hours. The Cardano Foundation has introduced Originate, a blockchain tool designed to verify product origin and enhance enterprise adoption. This tool is intended to assist businesses in streamlining compliance and protecting against counterfeits. Originate enables companies to digitize and track essential product data on-chain, allowing for instant verification by consumers and regulators. The Foundation highlighted that Originate is built to strengthen brand trust in industries where supply chain transparency is crucial. By positioning itself as a tool for regulatory compliance and consumer assurance, the product may help bolster Cardano’s reputation in enterprise circles, especially at a time when investors are searching for real-world use cases beyond DeFi and staking.

Cardano’s ADA faces challenges as whale distribution intensifies and the $1 resistance strengthens. Data from Santiment reveals that wallets holding between 10 million and 100 million ADA now control a significant 35.62% of the total supply, establishing this group as the primary force shaping Cardano’s market dynamics. This concentration means that the trading behavior of these whales can heavily influence price movements, especially during periods of market weakness. Complementing this, mid-sized holders with 100,000 to 1 million ADA account for 16.23%, collectively controlling over half of ADA’s circulating supply. This distribution highlights a bifurcated market structure where both large and mid-sized holders play pivotal roles.

The recent trend of whales offloading ADA below their average cost basis raises concerns about potential further downside. Historical patterns show that after accumulating heavily in early 2025, these whales began trimming positions as prices approached breakeven, triggering notable price declines. The recent 270 million ADA sell-off could be an early indicator of renewed distribution pressure. Reclaiming the $1 level is more than just a psychological hurdle for ADA; it represents a critical structural reset necessary to restore market confidence. Historical data shows that when whales began accumulating in January 2025, the price eventually rallied to their average cost basis, prompting partial offloading and subsequent price declines. Currently, ADA remains below this breakeven point, with whales still underwater and potentially poised to reduce holdings further. This dynamic creates a precarious environment where upward momentum is stifled by supply-side pressure. Additionally, the $0.60 support level is under threat as weak buying interest fails to provide a robust floor. The interplay between whale distribution and lackluster demand could precipitate a deeper correction if no significant catalysts emerge.

From a technical perspective, ADA’s relative strength index (RSI) is approaching historically oversold levels, which in prior cycles have signaled potential rebounds. However, the current macro environment differs markedly from previous instances when Bitcoin’s strength catalyzed altcoin rallies. ADA/BTC pair analysis shows the token retesting February support levels with muted volume and flat momentum, indicating a lack of conviction among buyers. The convergence of whale fatigue, weak technical signals, and subdued speculative interest paints a cautious outlook for ADA in the near term. The $1 resistance level, once viewed as a catalyst for renewed bullish momentum, now appears increasingly formidable. Should whales continue to offload positions to mitigate losses, the risk of a capitulation event grows, potentially pushing ADA below the critical $0.60 support. Investors and traders should monitor whale wallet activity closely, as shifts in their behavior often presage significant price moves. Strategic accumulation during oversold conditions could offer opportunities, but only if accompanied by increased volume and positive on-chain metrics signaling renewed confidence.

Cardano has unveiled a strategic $100 million ADA swap initiative aimed at boosting stablecoin liquidity within its DeFi ecosystem, marking a significant move to enhance its competitive edge against Ethereum and Solana. This proposal seeks to address Cardano’s current stablecoin shortfall by exchanging ADA for Bitcoin and Cardano-native stablecoins, potentially generating non-inflationary revenue for the treasury and invigorating DeFi activity. According to Cardano founder Charles Hoskinson, “What is killing Cardano is our stablecoin situation. This would start to solve it,” underscoring the critical need for improved stablecoin integration to foster ecosystem growth. On June 13, 2025, Cardano’s founder Charles Hoskinson announced a pivotal proposal to swap $100 million worth of ADA for Bitcoin and Cardano-native stablecoins. This initiative is designed to tackle the platform’s limited stablecoin supply, which currently represents only 10% of its total value lock. The proposal aims to enhance stablecoin liquidity and DeFi competitiveness, aiming to strengthen its position against Ethereum and Solana.