Cardano is facing renewed downside pressure after large holders reduced their positions and on-chain activity cooled sharply, according to analyst Ali Martinez. The warning comes as ADA approaches a critical technical support zone around $0.24.
Martinez highlighted that Cardano whales sold more than 110 million ADA over the past five days. Whale holdings declined from roughly 2.82 billion ADA toward the 2.74 billion area before showing only a small recovery near the end of the period. This suggests large investors have been distributing into recent price weakness rather than buying the dip, increasing short-term supply pressure.
Network activity has also weakened. Daily active addresses on Cardano fell from 27,248 to 15,977, a drop of 41.36%. Martinez noted that fewer wallets are interacting with the network at the same time whales are reducing holdings, which strengthens the bearish case for ADA.
The key level to watch is the rising channel support near $0.24. If ADA holds above that area, the current weakness may remain contained. However, if $0.24 breaks, Martinez points to roughly $0.21 as the next downside zone near the lower boundary of the channel. The combination of whale selling, falling active addresses, and price moving toward a technical floor makes $0.24 the decisive level for whether Cardano stabilizes or extends its correction.
