Cardano Whales Sell 390M ADA as Price Drops 2% Amid Bearish Trend

Cardano’s ADA token has seen a significant sell-off from large holders, or “whales,” as over 390 million ADA tokens were offloaded in recent weeks. This move has added downward pressure on the token’s price despite the project achieving a key governance milestone, with a $71 million treasury allocation approved by 74% of voters [1]. The funds are intended to support major initiatives like the Hydra scaling solution, Project Acropolis, and enhanced developer tools. The allocation also marks the first successful on-chain governance vote in Cardano’s history, signaling a shift toward community-driven decision-making [2].

Despite this positive development, ADA continued to decline for a third consecutive week, with the token dropping nearly 2% on Wednesday [3]. Technical indicators confirm a bearish trend, as the RSI sits at 40 and the MACD has turned negative [4]. The price remains trapped in a descending channel, with the 50 EMA converging with the 200 EMA, and key resistance levels preventing a short-term breakout. The recent selling pressure has also pushed transaction volume down from $1.69 billion to $744 million [5].

Whale activity has further amplified the bearish sentiment. Wallets holding between 1–100 million ADA dumped 390 million tokens since July 24, reducing their holdings to 18.51 billion ADA [6]. In contrast, larger whale accounts—those holding over 100 million ADA—quietly accumulated an additional 450 million tokens, increasing their total holdings to 5.36 billion ADA [7]. However, the overall net pressure remains negative due to the dominance of mid-sized whale wallets, which hold more tokens and currently exhibit a bearish bias.

Retail investors, however, have shown more resilience. Daily active addresses on the network rebounded to 31,000, up from a recent low of below 29,000 [8]. Smaller holders remain optimistic about the project’s long-term vision, including the recent launch of the Midnight sidechain and the airdrop of the NIGHT token to 37 million users [9]. These developments highlight ongoing innovation within the Cardano ecosystem. Nevertheless, the market appears to be reacting more to whale behavior than to on-chain progress, with ADA struggling to break out of its technical downtrend.

Source:

[1] [Cardano Whales Offload 390M ADA](https://cryptonewsland.com/cardano-whales-offload-390m-ada/)