Cardano News Today: Whales Move $22.8M ADA to Vaults as Bears Dominate Short-Term Outlook

Cardano (ADA) has faced a sharp decline in recent weeks, with the cryptocurrency slipping below $0.58 on Monday amid intensifying bearish momentum and rising short positions, according to an FXStreet report. The price drop extends a 10% slide from the previous week, driven by weakening on-chain activity and a derivatives market skewed toward pessimism. Santiment's Daily Active Addresses index, a key indicator of network usage, has fallen to 24,280 from 32,115 on October 11, signaling reduced demand for Cardano's blockchain services, the FXStreet report noted. Meanwhile, the long-to-short ratio on Coinglass stands at 0.75, the lowest in a month, reflecting growing trader bets against ADA.

Technical indicators reinforce the bearish outlook. Cardano's price rejected a critical $0.70 resistance level last week and now faces a potential decline to $0.49 as momentum metrics like the RSI (32) and MACD (converging green histogram bars) suggest fading bullish momentum; a recovery above the 20-day EMA at $0.64 could reignite a rally toward $0.70, according to Cointelegraph's price predictions.

However, some analysts argue that a recovery above the 20-day EMA at $0.64 could reignite a rally toward $0.70.

Amid the downturn, on-chain data reveals a contrasting narrative of potential accumulation. Whale activity has surged, with $22.8 million in ADA tokens-equivalent to 37.5 million coins-transferred off exchanges like Coinbase into private wallets, according to a Coinotag analysis. This outflow, part of a broader -$3.02 million netflow, suggests institutional or large investors are positioning for long-term gains. Such behavior historically precedes price recoveries, as reduced exchange liquidity often amplifies volatility in favor of buyers, the Coinotag analysis added.

Futures markets also hint at bullish sentiment. Taker buy dominance over 90 days indicates aggressive buyer participation, with derivatives traders absorbing price dips and building momentum toward key resistance levels. This aligns with Input Output's recent announcement of the Ouroboros Phalanx upgrade, designed to boost Cardano's security and transaction speeds by up to 30%, as noted in a TradingView report https://www.tradingview.com/news/tradingview:84cfd9a2bd611:0-key-facts-input-output-reveals-ouroboros-phalanx-upgrade-for-cardano-ada-indicates-pivotal-accumulation-phase/. The upgrade, expected to enhance scalability and smart contract capabilities, could catalyze renewed interest in the ecosystem.

Despite the bearish near-term outlook, some analysts see a path for ADA to rebound. If buyers defend the $0.50 support level, a breakdown could trigger a test of $0.40, while a sustained recovery above $0.70 may signal broader altcoin momentum, a point highlighted in Cointelegraph's coverage. The interplay between whale accumulation, technical indicators, and upcoming upgrades will be critical in determining Cardano's trajectory.