Key Takeaways
Why are Cardano whales selling 350 million ADA?
Large holders appear to be reducing their exposure due to declining market confidence and weakening bullish momentum.
What does the uptick in long liquidations mean for ADA’s outlook?
Long liquidations exceeding short positions seemed to confirm strong bearish control.
Cardano [ADA] whales have dumped roughly 350 million ADA over the past week, marking one of the largest sell-offs in recent months. Such coordinated selling often reflects expectations of near-term downside or a desire to secure profits after recent volatility.
Now, retail traders have attempted to absorb some of the outflows. And yet, the price momentum remains weak as selling pressure outweighs accumulation.
Consequently, this distribution phase could also allude to a cooling trend in institutional interest, leaving ADA vulnerable to further losses. Especially if sentiment does not improve in the coming sessions.
Cardano defends key support as bears test the descending channel
At the time of writing, ADA’s price was trading near $0.67 after testing the lower boundary of its descending channel around $0.65. This zone has historically acted as a springboard for short-term rebounds. However, sellers remain active at resistance levels near $0.73 and $0.87.
If buyers fail to protect this area, the next support would be around $0.53 – A zone that could attract bargain hunters.
However, regaining momentum above $0.73 could invalidate the bearish setup – Hinting at a potential reversal if bullish volume expands in the short term.
Source: TradingView
Open Interest falls as traders retreat from risk exposure
Cardano’s Open Interest dropped by 2.12% to $669.89 million, reflecting declining enthusiasm in leveraged markets. This contraction is also a sign that traders have been closing positions amid fading volatility and rising caution.
The fall in Open Interest mirrors the broader reduction in whale holdings, reinforcing that both retail and institutional participants may be adopting a defensive stance.
Such an environment typically precedes consolidation phases, one where liquidity tightens and speculative behavior cools down before any sustainable recovery across the Futures landscape.
Long liquidations expose bearish control across exchanges
Finally, liquidations data revealed that $1.13 million in long positions were wiped out compared to only $187,000 in shorts. Such an imbalance indicated that bulls lost significant ground as downside pressure intensified.
Platforms such as Bybit and Binance recorded the highest liquidations, confirming that long traders faced forced exits.
The dominance of long liquidations seemed to be in line with the fall in Open Interest – Evidence of a market reset favoring sellers. If this pattern persists, ADA might be in an extended correction phase for a while.
Can ADA recover after whales and longs capitulate?
Cardano’s outlook remains cautious as whale sell-offs, shrinking Open Interest, and liquidated longs confirm a bearish bias. And yet, the proximity of ADA’s price to its lower trendline support offers a potential pivot for short-term recovery.
For ADA to reverse this narrative, buyers must defend press time levels and reclaim the $0.73 zone decisively.
Until then, the bears will hold the upper hand. Sustained accumulation remains the key catalyst for any meaningful rebound.
