The price of Cardano (ADA) has dropped nearly 10% over the past week, bringing it close to its 30-day low. While the broader cryptocurrency market is also experiencing a downturn, the primary cause of ADA’s decline appears to be a significant reduction in whale activity.

With increasing selling pressure, ADA continues to slide, raising concerns among investors. Here’s a detailed look at the key factors behind this trend.

Cardano Whales Reduce Buying Activity

According to IntoTheBlock, the net flow of large ADA holders has dropped by 90% over the past seven days. These large holders, also known as whales, own more than 0.1% of ADA’s circulating supply.

The net flow of large holders measures the balance between inflows and outflows of ADA to and from whale wallets, indicating their buying or selling behavior. A decline in this metric suggests that whales are offloading large portions of their holdings, increasing supply on the market and applying downward pressure on ADA’s price.

ADA Large Holders Netflow. Source: IntoTheBlock

This massive whale sell-off could weaken retail investors' confidence, prompting them to sell their ADA holdings in anticipation of further losses. Such a scenario accelerates ADA’s price decline, especially if a profit-taking sentiment spreads among market participants.

On-Chain Data Confirms a Surge in Sell-Offs

The trend of large-scale selling is not limited to ADA holders. On-chain data from the Network Realized Profit/Loss (NPL) metric shows that sell-offs have impacted the broader crypto market.

According to Santiment, ADA’s NPL turned positive on Wednesday, indicating that many investors are selling at a profit after several days in negative territory.

NPL (Network Realized Profit/Loss) compares the price at which a token was last moved or sold to its current market price. A positive NPL means that more investors are selling at a profit than at a loss.

This selling activity can lead to an increase in ADA’s market supply, potentially driving prices lower if demand does not match the selling pressure.

ADA NPL. Source: Santiment

ADA Price Prediction: Will the Altcoin Hit a 30-Day Low?

A key technical indicator, the Relative Strength Index (RSI), has dropped to 45.49 on the daily ADA chart.

The RSI measures momentum on a scale between 0 and 100. Readings above 70 indicate an overbought asset, while values below 30 suggest an oversold market that may be due for a rebound.

At 45.49, ADA’s RSI is trending downward, signaling increasing selling pressure. However, it has not yet reached oversold territory, meaning there is still room for further declines.

If this price downtrend continues, Cardano could drop to its 30-day low of $0.82. On the other hand, if market trends shift toward accumulation, ADA could rebound above $1.

ADA Price Analysis. Source: TradingView

Key Takeaways

Cardano whales are offloading holdings, reducing buying activity and pressuring prices downward.
Network Realized Profit/Loss (NPL) shows an increase in profit-taking, indicating more investors are selling at a profit.
RSI suggests rising selling pressure, but ADA has not yet entered oversold territory.
If the selling trend continues, ADA could drop toward its 30-day low of $0.82.
A shift toward accumulation could push ADA back above $1.

Cardano is currently at a critical juncture, where further whale and retail investor movements will determine whether ADA continues its decline or stabilizes for a potential rebound.

#Cardano , #ADA , #CryptoNewss , #Altcoin , #CryptoMarketMoves



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