The price of Cardano (ADA) has been on a downward trend recently, raising concerns that it could drop below the $1 support level.

A significant contributor to this decline is selling activity by large ADA holders, often referred to as whales. These Cardano investors are selling their holdings, likely to capitalize on recent gains to lock in profits.

When large holders of a cryptocurrency sell their coins, it signals a decline in confidence in the asset and introduces significant selling pressure into the market. This can drive prices down, especially if the market lacks sufficient demand to absorb the large sell-off. This trend can also trigger further panic selling by smaller investors, further pressuring the asset’s price.



Furthermore, the profitability of ADA transactions over the past few days has contributed to the increased selling. Data from Santiment shows that the on-chain profit/loss for the coin has been consistently positive over the past seven days, indicating that traders have been selling for profit.