Cardano (ADA) Drops 27%, Faces Mixed Whale Activity and Market Pressure
Cardano (ADA) experienced a 27% decline this week, dropping below $0.66 due to risk-off flows in the crypto market. Bitcoin's movement towards $104,000 and reduced altcoin liquidity contributed to this downturn.
Whale Activity and Market Impact
- Santiment data shows wallets holding 1–10 million ADA sold approximately 40 million ADA over seven days.
- Overall whale distribution totaled 350 million ADA, affecting prices.
- Larger wallets accumulated between 140–200 million ADA, leading to price consolidation between $0.65–$0.70.
Derivatives markets show caution with Cardano's open interest decreasing by 2.12% to $669.9 million. Long liquidations ($1.13 million) vastly exceeded shorts ($187,000).
Technical Indicators and Future Projections
- On the 4-hour chart, ADA forms a falling wedge; a breakout above $0.74 is needed for confirmation.
- Current momentum indicators: RSI at 37 (approaching oversold), CMF indicates potential inflows.
Price Levels and Risks
- If ADA fails to hold $0.66, prices could drop to $0.65, then possibly to $0.62–$0.60, or even $0.57.
- Reclaiming $0.66 and breaking through $0.74–$0.80 could lead to targets of $0.86 and possibly $1.00 in Q4.
Analysts suggest a potential path towards $1.20–$1.60 upon confirmed breakout but warn of possible dips due to leverage resets and uneven liquidity.
Community and Development Updates
- Cardano's community treasury has surpassed 1.6 billion ADA ($1 billion), supporting DeFi and infrastructure development without VC influence.
- New staking options and initiatives like Midnight and Leios are expanding the ecosystem, although TVL ($288 million) remains behind larger chains.