Whales Sell 50M ADA in 48 Hours—Could This Dip Be a Trap for Retail Investors?

Cardano’s native token, ADA, has recently consolidated near the $0.80 level, with bulls eyeing a potential breakout toward the $2 threshold. The price action has drawn attention as large investors, or “whales,” continue to offload significant portions of their holdings, raising concerns among retail traders and analysts alike. At the time of writing, ADA trades at $0.8244, but the daily trading volume has seen a decline of 4.39%, signaling reduced market participation and a possible period of uncertainty ahead.

Analyst Ali Martinez has reported that whales have sold 50 million ADA tokens within just 48 hours, which could have a short-term impact on the price. The selling pressure has pushed ADA toward the $0.80–$0.82 support zone, a critical area for bulls to defend. Should this support hold, it could serve as a foundation for a potential recovery. However, a break below this level may signal further declines in the short term. Whale activity is often cyclical, with large players selling during strength and re-entering during panic, suggesting that this dip might represent an accumulation opportunity for bigger participants.

Market sentiment among Cardano investors has turned increasingly bearish. According to Santiment data, the ratio of positive to negative comments on ADA has dropped dramatically from 12:1 in early August to 1.5:1. This sharp decline in optimism has been attributed to three consecutive weeks of price declines, which have tested the patience of retail investors. However, historical patterns suggest that such bearish sentiment can serve as a contrarian indicator. Santiment notes that it is often during periods of retail pessimism that whales quietly accumulate at lower prices, a trend that may be playing out in the current ADA price action.

Technical indicators also highlight the importance of the current price range. ADA is trading within a broader ascending structure that has been in place since June, with the token currently sitting at the Fibonacci 0.382 retracement level of $0.82. This level is widely regarded as a key decision point by analysts. Independent analyst Quantum Ascend has described this area as a “make-or-break zone,” where ADA must either confirm a recovery or extend its downward movement. Meanwhile, Crypto King has noted a more bullish scenario, suggesting that if ADA remains within its defined channel, it could retest the $1 level in the near future, with further upside potential reaching $1.20 and even $1.40.

The broader context of market sentiment in the cryptocurrency space is also relevant. While the provided content also discusses the Bitcoin long vs short ratio as a tool for gauging trader positioning, this metric is more general and not directly linked to Cardano’s price dynamics. Nonetheless, the principles of overleveraged positioning and sentiment shifts are relevant to ADA as well. If ADA can maintain its current range and avoid breaking key support levels, it could eventually retest the $1 level in the months ahead. A sustained move above this threshold might position ADA as a breakout performer in 2025, according to some analysts.

Source: [1] Cardano Whales Are Dumping, Traders Not Happy: Will ADA Price Hit New High? (https://finance.yahoo.com/news/cardano-whales-dumping-traders-not-081256153.html) [2] Long vs Short Ratio (https://www.gate.com/crypto-market-data/funds/long-short-ratio)