Cardano Whale Activity Raises Questions: Can Retail Investors Support ADA Amid Significant Sell-Off?

• In a surprising turn of events, Cardano’s ADA has seen a significant selling spree by large investors, raising questions about market stability.

• Despite over 100 million ADA sold by whales in just a week, the overall number of Cardano holders continues to increase, indicating a resilient retail market.

• As noted by COINOTAG, “The ongoing accumulation by smaller holders suggests broader market interest remains intact amid the whale exodus.”

Cardano faces a volatile market as whale sell-offs top 100 million ADA, yet retail confidence grows with more holders entering the space.

Cardano Whale Sell-Off: A Cause for Concern?

Recent reports show that addresses holding between 1 million and 10 million ADA have drastically reduced their holdings, which raises eyebrows among market analysts. This sudden sell-off could signal a potential trend shift within the crypto landscape, especially for investors closely watching Cardano’s price movements.

Source: X

This selling pressure correlates with ADA’s dip to $0.7046 as of the latest data. Although whale actions can manipulate short-term price trends, the rising number of holders suggests a robust interest from the retail side.

ADA’s Price Reaction

Currently, Cardano has been sitting in a bearish trend, as reflected by its struggles to breach key resistance levels. The critical 50-day and 200-day Moving Averages—$0.7646 and $0.8913 respectively—highlight a lack of upward momentum. A break above the 50-day MA could hint at recovery, while failure to maintain current support may see ADA testing lower levels near $0.65.

Source: TradingView

The Relative Strength Index (RSI) hovered around 43.61, indicating a neutral position with no immediate signs of an oversold condition. However, prolonged selling from whales could alter this balance, pushing ADA into deeper bearish territory.

Cardano Holder Count Rises Despite Whale Exodus

In a noteworthy contrast, Cardano’s total holder count has reached new heights, exceeding 4.46 million. This trend illustrates a clear divergence between the actions of whale investors and growing retail participation. Such dynamics often reflect a long-term confidence in the asset, even amidst large-scale profit-taking by key players.

Source: Santiment

Will ADA Rebound or Continue to Decline?

To regain bullish momentum, Cardano must reclaim levels in the $0.75-$0.80 range. Resistance lies at $0.78, with a move above $0.80 confirming a bullish reversal. Conversely, if the price fails to hold above $0.70, ADA risks further declines towards the $0.65 support level. Market participants should remain vigilant towards volume trends and price levels to gauge ADA’s upcoming trajectory.

Conclusion

In summary, while recent whale sell-offs create short-term uncertainty for Cardano, the rising number of retail investors reflects a potential underlying strength within the market. As events unfold, continuous monitoring of both whale actions and retail accumulation will be crucial for understanding ADA’s future price movements.