Cardano (ADA) is currently navigating a period of significant bearish pressure, with key indicators and whale activity signaling a potential downtrend. Despite a recent modest price uptick and trading volume surge, the underlying market sentiment remains cautious as the digital asset struggles to maintain crucial support levels.
Whale Activity Signals Downside Pressure
The past week has seen considerable strategic selling by large Cardano holders, often referred to as "whales." An estimated 30 million ADA were offloaded after the price briefly touched a local peak of $1.01, with selling commencing around the $0.92 mark as the price failed to reclaim the $1 threshold. This extensive whale activity has significantly contributed to the downside pressure on ADA. Concurrently, technical analysis shows an EMA (Exponential Moving Average) cross, traditionally a bearish signal, further reinforcing the current negative momentum.
Critical Price Levels and Future Outlook
ADA is currently attempting to hold above the $0.80 support zone, a critical level that could signify a cooling phase if sustained. However, a more immediate concern is the long-term uptrend, which is threatened if the higher low at $0.70 is breached. Should $0.70 fail to hold, the bullish structure would break, potentially opening the path for ADA to slide towards the $0.57–$0.51 range—a zone previously marking a double bottom during a bear market. Adding to this uncertainty, a significant cluster of short positions sits just above recent price action, posing a risk of further downward momentum if these positions fuel selling rather than triggering a short squeeze. Conversely, smaller long positions around $0.78 suggest limited buying strength, leaving ADA vulnerable to deeper declines without a fresh surge in demand.
