Cardano (ADA) is facing intense selling pressure from its largest holders, raising concerns of a significant price decline. Over the past week, whales have offloaded between 210 million and 230 million ADA, worth approximately $56.7 million to $63 million. This substantial redistribution has reduced whales' control of the circulating supply to around 37%, signaling a potential loss of confidence among major investors.
The selling coincides with ADA's struggle to break out of a bearish pattern. The altcoin's price is currently hovering around $0.27, just below a key resistance level of $0.28. Technical analysis points to a bearish flag formation, which, if validated, could trigger a 31.75% drop toward the $0.17 support level. Analysts have identified further critical support levels at $0.245, $0.112, and $0.051 should the downtrend continue.
Market sentiment is further dampened by the MVRV Long/Short Difference metric, which remains deep in negative territory. This indicates that short-term holders (STHs) are currently in profit while long-term holders (LTHs) are not, a dynamic that often leads to increased selling pressure as STHs tend to cash out quickly.
Amid the bearish technicals, Cardano founder Charles Hoskinson made headlines by publicly supporting the GENIUS Act and agreeing with former President Trump's criticism of banks attempting to amend the bill. "I agree with the President. The banks amended the bill 137 times. They have to stop messing with it and trying to shut down the industry," Hoskinson stated. However, this regulatory advocacy has yet to translate into positive price action.
Some potentially bullish signals exist. ADA's weekly Relative Strength Index (RSI) has fallen below 30, indicating the asset is historically oversold and could be due for a rebound. Furthermore, exchange netflows have been predominantly negative for months, suggesting investors are moving tokens to self-custody, which reduces immediate sell-side pressure on exchanges.
