Whale Selling Threatens Cardano's $1 Comeback

Cardano (ADA) appears to be experiencing a fragile recovery amid recent whale-driven price fluctuations. Over the past 24 hours, ADA's price rose approximately 2.50%, with trading volume surging by 69% to around $1.45 billion. Despite this, on-chain data suggests that large holders, or “whales,” have been offloading a significant portion of their ADA holdings—approximately 30 million tokens—raising concerns about potential downward pressure on the price. The selling activity began near $0.92 following a local peak at $1.01, with whale balances reaching 5.57 billion ADA [1].

The price action has been oscillating around the $0.80 accumulation zone, a level considered critical for stabilizing ADA’s trajectory. However, bearish signals from the EMA (Exponential Moving Average) suggest that further declines could be in play. If the $0.80 level fails to hold, the price may drop toward $0.70, with a subsequent breakdown potentially driving ADA into a range between $0.57 and $0.51—a previous double-bottom area. This scenario would mark a significant departure from the long-term uptrend observed earlier in the year [2].

A notable aspect of ADA’s price behavior is the clustering of short positions between $0.82 and $0.85, amounting to approximately $17 million worth of ADA. A short squeeze in this range could push the price back toward the $1 level, offering a potential reversal point. Conversely, if the bears maintain control, the price could slip further below $0.80. Long positions, though present, are roughly half the size of the shorts, indicating weaker buyer interest at these levels [2].

Meanwhile, Cardano founder Charles Hoskinson has expressed confidence in ADA’s long-term potential against Ethereum, but whale activity contradicts this optimism. The continued selling by large holders suggests a lack of conviction in ADA’s ability to reclaim key resistance levels above $1.00. As traders monitor these dynamics, the $0.80 and $0.70 levels remain focal points for near-term price direction [1].

The broader crypto market is also watching closely as Ethena (ENA) and OKB show varied performances. ENA has seen a weekly gain of nearly 9%, despite the looming risk of a 171.88M token unlock, which could introduce further supply pressure. OKB has demonstrated strong short-term momentum, with a 10% daily rise reaching near $180, though it has since retreated into a bearish channel. These movements highlight the volatility and sensitivity of the crypto market to whale-driven sentiment and supply events [1].

Amid this uncertainty, smaller altcoins such as MAGACoin Finance are attracting investor interest as alternatives to traditional large-cap assets. Traders are beginning to allocate capital to projects like MAGACoin Finance, particularly as they trade below 1 cent and show early signs of exponential growth. While this trend introduces new variables into the market, it also underscores a shift in investor behavior toward early-stage opportunities. However, due to the speculative nature of such investments, caution and thorough research remain essential for potential participants [1].

Source:

[1] Cardano Whale Buys Push Price Toward $1 -- ENA and ... (https://www.digitaljournal.com/pr/news/indnewswire/cardano-whale-buys-push-price-1211040356.html)

[2] Why Cardano faces RISK at $0.70 as whales dump 30M ADA (https://ambcrypto.com/why-cardano-faces-risk-at-0-70-as-whales-dump-30m-ada/)