Cardano’s native token ADA has come under significant selling pressure after large holders began offloading their positions, triggering a wave of bearish technical signals. Over the past nine days, the number of wallets holding between 1 million and 10 million ADA fell from 2,370 to 2,340, according to data from Santiment highlighted by analyst Ali Martinez. This coordinated exit by whales comes after ADA rallied roughly 15% over the past month, touching a local peak near $0.21 before slipping to around $0.188.
Martinez identified three key warning signs pointing to a deeper correction. First, the shrinking whale cohort suggests large players are taking profits or redistributing holdings. Second, a death cross has formed between Cardano’s Market Value to Realized Value (MVRV) ratio and its 7‑day simple moving average, signaling weakening momentum. Third, the Tom DeMark (TD) Sequential indicator flashed a bearish sell signal on the daily chart.
If these signals are confirmed, ADA could slide to the mid‑range support at $0.17. A breakdown below that level may accelerate the decline toward the lower boundary of the trading range near $0.144, which would mark a full trend reversal from the recent rally.
Additional headwinds include the withdrawal by Grayscale of its ETF filing for ADA, dashing hopes for an institutional demand boost. On a more positive note, exchange netflows have turned negative, with more ADA moving off centralized platforms into self‑custody, which reduces immediate selling pressure. Moreover, the Relative Strength Index (RSI) has plunged to 25, deep in oversold territory, often seen as a potential buying opportunity.
