Cardano’s ADA Faces 50% Drop From Peak Amid Whale Selling

Cardano’s ADA token is currently facing significant challenges in reclaiming the $1 mark. This struggle is exacerbated by substantial selling pressure from large holders, commonly referred to as whales, and the presence of key resistance levels. Despite a recent 6.6% weekly gain, which pushed ADA’s market cap above $21 billion, the cryptocurrency remains nearly 50% below its March peak. The $0.70 level has been identified as a critical resistance point for a potential rebound.

From a technical perspective, ADA is currently forming a falling wedge pattern on the daily chart, which is often indicative of an impending trend reversal. Momentum indicators such as the MACD and RSI have started to trend upwards, suggesting a gradual shift from bearish to bullish sentiment. A confirmed breakout above the wedge’s upper boundary at approximately $0.6053 would serve as a key bullish trigger, potentially opening the path toward the next resistance level near $0.73. This target represents a potential upside of around 25.8% from current price levels. However, sustaining this momentum depends heavily on ADA maintaining its critical support at $0.54. A breach below this level could invalidate the bullish setup and lead to further downside pressure.

Data from Santiment reveals that whale wallets have offloaded over 170 million ADA in the last two weeks, signaling a decline in confidence among large holders. This significant outflow of “smart money” typically forecasts short-term weakness and may continue to suppress upward price movements. Such selling pressure complicates ADA’s path to reclaiming $1, as institutional and retail investors remain cautious amid broader market volatility. Unless bulls can flip the $0.73 resistance into support, a sustained rally appears unlikely in the near term.

On July 8, the Cardano Foundation unveiled Reeve, an enterprise-grade financial reporting platform designed to publish tamper-proof financial data directly on the Cardano blockchain. This innovation offers institutions a transparent, audit-ready solution that integrates seamlessly with existing accounting systems. By focusing on enterprise adoption beyond traditional DeFi and staking applications, Cardano aims to strengthen its fundamental value proposition. Reeve’s ability to provide immutable financial records could attract institutional allocators seeking scalable and compliant blockchain infrastructure. This strategic pivot may serve as a catalyst for renewed investor interest and improved liquidity flows, potentially supporting ADA’s price recovery if macroeconomic conditions remain favorable.

Looking ahead, market participants should monitor ADA’s ability to hold above $0.54 and break through $0.6053 decisively. Success in these areas could pave the way for testing $0.70 and eventually challenging the $1 threshold. Conversely, failure to maintain support could trigger a deeper correction toward $0.50 or even $0.44, where stronger buying interest has historically emerged. Investors are advised to watch whale wallet activity closely, as continued large-scale selling may signal further downside risks.

Cardano’s ADA remains at a critical juncture, balancing between technical bullish signals and significant selling pressure from large holders. While the launch of the Reeve platform introduces promising enterprise use cases that could bolster institutional demand, short-term price recovery depends on overcoming key resistance levels and sustaining support zones. Investors should remain vigilant, as ADA’s trajectory will likely hinge on broader market sentiment and macroeconomic factors influencing liquidity and risk appetite.