The cryptocurrency market is flashing warning signals for Cardano (ADA) after a massive sell‑off by large holders, known as “whales.” According to reports, wallets controlling between 100 million and 1 billion ADA dumped more than 100 million tokens over the past 72 hours — a move that has triggered growing concern over a potential deep correction in the price of ADA.
Market Sentiment Turns Bearish
Several factors combine to cast a shadow over ADA’s near‑term prospects:
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The price has fallen below the 200‑day exponential moving average, a key technical indicator, suggesting weakening momentum.
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The sell‑off by the whale wallets appears to have spooked smaller traders, with data showing a surge in short positions (approx. $15.91 million) compared to long positions (approx. $5.54 million).
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Trading volume has dropped roughly 25 % to $1.17 billion, signalling reduced market participation and possibly a lack of conviction among buyers.
In short: the combination of large‑scale selling, increasing bearish bets, and thinning volume suggests that the market may be preparing for a downward move.
Key Price Levels to Watch
Technical analysis points to several critical support and resistance zones:
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Support around $0.615 (USD) is under pressure: ADA has tested this level multiple times since October 10, 2025, and each time buyers have stepped in to prevent a collapse — but this time the underlying sentiment is weaker.
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If this $0.615 support zone fails, the next major downside target is around $0.515.
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On the upside, a rebound toward $0.68 is still plausible if the support holds and sentiment improves.
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The Average Directional Index (ADX) reads ~43, indicating that the current trend—downward—is strong. Meanwhile, the Supertrend indicator remains red and is above the price, signalling that the bears are still in control.
What This Means for Investors
For those holding or considering exposure to ADA:
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The large‑scale dumping by whales may suggest that some major players expect weak short‑term performance or are taking profit. When large holders move in this way, the signal is often negative for immediate price action.
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With traders mimicking whale behaviour and short positions dominating, there is elevated risk of a self‑fulfilling down‑move: if ADA breaks $0.615, momentum may accelerate toward the $0.515 region.
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On the flip side, if buyers return and defend the $0.615 level, we could see a recovery move toward $0.68, which might present a more bullish scenario for mid‑term holders.
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As always, this is not investment advice. The market is volatile and risk is high. Conduct your own research and consider your risk tolerance before making decisions.
Looking Ahead
While the fundamentals of Cardano may still hold potential in the long run (its ecosystem development, staking features, etc.), the short‑term picture is decidedly shakier. Unless support holds and sentiment improves, ADA may be vulnerable to a deeper correction.
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