ADA is experiencing some new selling pressure, with on-chain data showing that whales sold millions of tokens in a week. Although the market has registered slight gains in the intraday, investor sentiment is reserved and traders are divided on the short term stability of the asset.
Whale Distribution Adds Pressure on Cardano
The chart shared by analyst Ali (@ali_charts) shows a sharp decline in whale holdings, indicating heavy distribution among addresses holding between 100,000 and 1,000,000 ADA. Over the past week, these entities offloaded more than 4 million ADA, driving short-term weakness across the market.
As whale balances decreased, ADA’s price closely mirrored this drop, revealing a strong correlation between large-holder selling and market performance. Such moves typically occur during phases of profit-taking or when capital shifts toward more active tokens like FIL or ICP. The lack of accumulation from major holders indicates that institutional sentiment toward Cardano has softened.
This pattern of distribution often precedes consolidation or further corrections, as smaller investors mirror the selling behavior of larger players. Without renewed accumulation, the market may continue facing difficulty in sustaining any meaningful upward momentum in the coming sessions.
Intraday Gains Fail to Offset Broader Downtrend
As of writing, ADA is trading at around $0.543 with a 1.65% increase over the past 24 hours. In spite of this increase, the token is still down 9.67% in the week, which affirms that a bearish structure persists.
The 1-day chart also indicates that there was a short-lived recovery of lows of about $0.515, indicating that short term buyers intervened when the stock was oversold. Nonetheless, the performance is negative in the medium-term with a loss percentage of 33.85% and 31.37% within a period of 30 days and 90 days respectively, highlighting the presence of long-term downward pressure.
In the last six months, the value of ADA has declined by 35% although this is still higher than that of a year ago by 49.45%. This inconsistent information indicates the fact that there is a cyclical but unstable price action where temporary increases usually precede new consolidation phases.
Traders Take Cautious Optimism, Weak Fundamentals.
The market indicators indicate a tentatively optimistic attitude of traders. Long/short ratio by accounts on Binance is 2.23, whereas on OKX the same ratio is 2.12. Within the group of the leading traders in Binance, the ratio increases to 2.55, indicating the sense of a rebound in the short term.
The low liquidation activity also helps to maintain a steady market, and less than $611 in ADA positions was liquidated over the last few sessions. The less leverage risk will perhaps enable a slow recovery should market participation improve. Nevertheless, the upside remains limited by resistance levels of between $0.55 and $0.56.
The general perspective of Cardano will be dependent on the stabilization of whale activity. ADA might be in a more balanced stage in case the selling becomes easier and smaller investors take in supply. To that point, the market can continue to be caught in between localized rebounds and consistent sell pressure, as it is a risk-averse environment due to behavioral instead of strictly technical factors.