Cardano (ADA) experienced significant selling pressure last week as large holders, or 'whales,' sold off 30 million tokens worth approximately $24.3 million. This selling began after ADA reached a local peak of $1.01 in late August and failed to maintain momentum above the $0.92 level. Despite this substantial outflow from major holders, ADA has demonstrated resilience by holding critical support around the $0.80 zone, currently trading near $0.81.
On-chain metrics tell a contrasting story of robust network health. Cardano recorded over $5.3 billion in transaction volume within a seven-day period, marking one of its most active weeks in 2025. This surge in activity was accompanied by increased active addresses and open interest, signaling growing engagement from both retail and institutional participants.
Technical analysis presents mixed signals for ADA's near-term direction. The MACD indicator shows bullish divergence, suggesting weakening bearish momentum, while exponential moving averages have turned bearish, indicating potential downside risk. ADA has maintained position above major moving averages (EMA55, EMA89, and MA200) for seven consecutive weeks, demonstrating underlying strength.
Key support and resistance levels are critical for ADA's next move. The cryptocurrency has completed a 'clean retest' of prior resistance at $0.80, which has now flipped to support. If this level holds, ADA could target a return to the $1.00 psychological barrier. However, a break below $0.70 could trigger a deeper retracement to the $0.57-$0.51 range, which marked the double bottom during the previous bear market.
Liquidation data reveals approximately $17 million in short positions clustered between $0.82 and $0.85, creating potential for a short squeeze that could propel prices higher. Conversely, long positions around $0.78 are about half the size of the shorts above, suggesting more downside risk if support fails.