Cardano (ADA) continues to face heavy selling pressure despite a modest bounce this week that pushed it just above $0.53. After a monthly drop of over 30%, Cardano faces whale sell-off by large holders. On-chain data reveals that whales—wallets holding between 100,000 and 1 million ADA—have liquidated over 4 million tokens in the past week alone. This sustained selling by large investors coincides with ADA’s prolonged decline from September highs, contributing to persistent downward momentum across the market.
This week’s brief rebound has done little to shift overall sentiment. Technical indicators suggest further downside risks, and confidence among high-net-worth investors appears to be waning. Cardano’s daily chart reveals that the token remains trapped in a descending channel, unable to break the bearish pattern that has defined its recent trading range. ADA currently hovers near $0.53, with the lower Bollinger Band offering support at $0.51 and the upper boundary around $0.71 acting as key resistance.
Technical indicators also paint a cautious picture. The Relative Strength Index (RSI) hovers around 41, showing limited recovery potential. Likewise, the MACD stays near a bearish crossover, reinforcing the outlook of ongoing weakness. A move below $0.51 could extend the correction toward $0.43 or even $0.36. Conversely, a break above $0.60 might open the door to a short-term relief rally. Overall, the 1-day technical summary flashes a “Sell” signal, with moving averages leaning toward a “Strong Sell.”
Can Midnight’s surging activity offset whale selling pressure?
Despite the whale sell-off, Cardano’s underlying fundamentals continue to strengthen. The ecosystem remains one of the most active in the industry, with major updates rolling out to improve scalability and security. The standout story within the Cardano ecosystem this month is Midnight. This is Cardano’s privacy-focused sidechain, designed for secure and compliant data sharing.
Midnight has already surpassed one million mining addresses and recorded over 200,000 direct token claims. This is a clear sign of strong adoption momentum. Midnight’s ability to attract so many participants demonstrates the network’s underlying growth and the demand for privacy solutions in the blockchain space. Although Cardano faces whale sell-off, the explosive activity in Midnight could mitigate some of the bearish pressure. Analysts forecast that ADA could average $3 by 2026 and over $9 by 2030, suggesting long-term confidence in its potential.
