Despite on-chain data revealing that large holders sold over 350 million ADA in recent days, the token showed resilience with a 2.65% gain in the past 24 hours.

According to analyst Ali Martinez, data from Santiment indicates that wallets holding between 100 million and 1 billion ADA collectively reduced their balances significantly this week. The sell-off initially triggered bearish sentiment, briefly pushing ADA below $0.68. However, buyers quickly stepped in, helping the asset recover toward the $0.70 mark.

Whales Reduce Exposure, But Demand Persists

While whale activity typically signals short-term caution, the latest data suggests that smaller investors and traders are filling the demand gap. The rebound may point to renewed retail accumulation, especially as ADA remains one of the top traded altcoins by volume on Binance.

Whales appear to be locking in profits after ADA’s late September rise, but analysts note that these redistributions often precede periods of consolidation rather than full trend reversals. As a result, the broader outlook for Cardano remains cautiously optimistic as long as the price holds above its key support zone at $0.68.

Technical Picture Shows Early Recovery Signs

Technical indicators show mixed but improving momentum. The Relative Strength Index (RSI) on the daily chart has climbed from 38 toward 44, hinting at a potential recovery from oversold levels. Meanwhile, the MACD lines remain in bearish territory but appear to be flattening – a possible signal that selling pressure is waning.

If ADA manages to break above $0.72, it could open the door for another push toward the $0.78–$0.80 resistance range. On the downside, any drop below $0.67 would likely invite renewed selling pressure.

Market Sentiment Turns Cautiously Bullish

Despite whale outflows, market sentiment around Cardano has not turned decisively bearish. Many traders are interpreting the current conditions as a healthy market reset following weeks of profit-taking. The fact that ADA is holding firm amid significant on-chain selling is seen as a show of underlying strength.

Cardano’s ability to recover in the face of whale distribution could mark the beginning of a broader accumulation phase. As the crypto market eyes potential macro catalysts such as Bitcoin’s next resistance test, ADA’s stability above $0.68 may determine whether it continues its climb into the final quarter of 2025.