Cardano (ADA) is encountering resistance as it struggles to surpass the $1 threshold, a significant psychological milestone for the altcoin.
Despite prior bullish sentiment, investor confidence is diminishing as major ADA holders are opting to sell their tokens. This trend has put additional pressure on Cardano’s already weak price movement.
Cardano Investors Are Selling
Whales are contributing to the current bearish trend for ADA. Data reveals that addresses holding between 1 million and 10 million ADA sold off over 560 million tokens within just four days. Valued at nearly $500 million, this sudden sell-off indicates a clear lack of confidence among large investors.
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This activity underscores the impatience of whales who seem reluctant to wait for Cardano’s gradual ascent toward $1. Instead, they are securing profits now to reduce their exposure to potential risks.
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The broader momentum for Cardano remains troubling, especially with signs of investor fatigue. Active addresses are low, indicating diminished participation in network activity.
When network engagement is low, price movement often struggles to gain traction. With fewer traders involved, capital inflows stagnate, limiting ADA’s ability to mount a significant rally. Without a rebound in on-chain activity, the overall momentum for Cardano is likely to stay muted.
ADA Price Needs To Bounce Back
At the time of writing, Cardano’s price is at $0.888, slightly above the critical support at $0.880. However, the current conditions suggest a risk of slipping beneath this important level if bearish sentiment escalates. The ongoing whale selling clearly indicates vulnerability to further declines.
If ADA falls below $0.880, the next significant support is at $0.837. A decline to this level could extend recent losses and may trigger further liquidations from smaller holders, adding more downward pressure. This could hinder ADA’s recovery trajectory.
On the other hand, a successful rebound off $0.880 could initiate a short-term rally towards $0.931. Turning this resistance into support would enhance market sentiment, allowing ADA to aim for $0.962. Breaking through this barrier would refute the bearish narrative and bring Cardano closer to $1.
