On-Chain Data Shows 4M ADA Sold by Whales Amid Market Weakness

Large Cardano holders offload 4M ADA as on-chain data signals weakening demand and declining network activity.
Table of Contents

TL;DR:

  • Cardano whales sold 4M ADA in a week, signaling market caution.
  • On-chain activity and TVL show notable declines across the network.
  • ADA struggles to find support amid weak demand and shifting liquidity.

Cardano’s native token ADA faces renewed selling pressure after a notable wave of whale activity. On-chain data reveals that large holders offloaded approximately 4 million ADA in just one week, intensifying bearish sentiment across the market. This move coincides with broader crypto uncertainty, as investors appear to be shifting capital toward stable assets while ADA’s on-chain indicators flash signs of weakening momentum.

Whales Reduce Exposure as Cardano’s Momentum Fades

The sell-off was concentrated among whales holding between 100,000 and 1 million ADA, a group that has historically influenced price direction. Data indicates these entities have steadily reduced their exposure, with cumulative outflows reflecting a lack of confidence in ADA’s short-term recovery. Over the same period, the network recorded a slowdown in daily transaction volumes and fewer new wallet creations, suggesting a cooling of user engagement.

Cardano whales sold 4M ADA in a week, signaling market caution.

Market analysts warn that continued whale selling could exert further downside pressure on ADA, which is already struggling to maintain key technical support levels. Despite sporadic buying from retail traders, the imbalance between demand and supply persists. ADA’s price has oscillated near local lows, testing investor patience and raising questions about Cardano’s competitiveness amid the rising momentum of newer Layer-1 projects.

The contraction in large-holder positions also coincides with a broader decline in network activity metrics. Cardano’s total value locked (TVL) has slipped, and participation in decentralized applications (dApps) has stagnated. This stagnation contrasts with rival ecosystems such as Solana and Avalanche, which continue to attract liquidity and developer engagement. Analysts suggest that Cardano’s slower pace of ecosystem expansion could be amplifying the negative sentiment currently weighing on ADA.

For ADA to recover, renewed whale accumulation and a rebound in on-chain engagement may be necessary, alongside broader market stabilization. Until then, Cardano’s token remains vulnerable to further corrections, with investor sentiment firmly in “wait-and-see” mode as traders monitor the balance between accumulation and distribution across whale wallets.

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