- •Cardano whales moved 40 million ADA last week, driving increased volatility and price corrections.
- •ADA dropped over 17% in 24 hours, forming a sharp intraday decline and partial rebound.
- •Long/short ratios show traders remain bullish, though heavy positioning may trigger more liquidations.
Cardano has suffered significant market volatility this week after whale wallets disposed of 40 million ADA, putting further downward pressure on the price and sparking one of the sharpest intraday drops of the quarter. It is a critical recovery test in an environment of cautiousness on the asset.
Whale Selling Activity and Market Reaction
Analyst Ali (@ali_charts) reported that whales collectively sold around 40 million ADA in the past week, marking a notable phase of large-holder distribution. The associated on-chain data revealed declining whale balances as Cardano’s price advanced toward recent highs, suggesting that major players were selling into strength. This activity mirrors earlier distribution cycles where price rallies attracted selling pressure from long-term holders seeking liquidity exits.
The chart accompanying Ali’s observation displayed a clear relationship between the descending whale balance and a weakening price structure. Each upward movement in ADA coincided with diminishing large-wallet holdings, implying systematic unloading rather than panic-driven liquidation. Once these large transfers intensified, volatility expanded, and ADA formed consecutive lower highs — a classic sign of a fading rally.
Market liquidity was tested as supply from large accounts entered the open market. The scale of 40 million ADA shifting between wallets materially altered near‑term depth on major exchanges. This influx supply expanded bid‑ask spreads and increased short‑term losses as the retail traders took the heat of the exits by whales.
Sharp Decline and Partial Recovery
The trading chart captured a dramatic correction sequence. ADA’s price, which had held above $0.80 earlier, dropped sharply by over 17% within a day to reach $0.672. At one point, the sell‑off extended toward $0.47, indicating intense liquidation and forced selling across leveraged positions. The rapid price recovery toward the $0.65–$0.70 zone suggested a reactive effort by buyers to stabilize the market following mass capitulation.
During the correction, ADA’s market capitalization contracted to approximately $24.52 billion, while its fully diluted value reached $30.19 billion. These numbers indicate that about 81% of overall ADA supply is already in circulation, restricting buffer space in future inflation impacts. In 24 hours, the volume of trading rose to $5.65 billion, and proved even the increased speculative interest and market turnover after the whale caused the fall.
The intra trading range of $0.4723‑ $0.8218 was very volatile. Post‑rebound price compression indicates that traders are still cautious, until they get more definitive directional indications. Though the recovery is temporary, ADA continues to trade below its resistance at 0.80 and the short term momentum remains weak and relies on stabilizing inflows.
Long/Short Positioning and Forward Outlook
Long/short information indicates that traders still prefer bullish exposure even in the face of corrections. The ADA/USDT Long/Short Ratio (Accounts) in Binance is 2.2144, whereas top trader positioning is 2.231, or more than two longs per short. The ratio on OKX stands at 1.77, which is slightly tamed optimism but has a long‑biased tilt.
This collective positioning suggests that sentiment remains constructive, yet overextended leverage could amplify further downside if momentum fails to recover. Heavy long ratios often precede short‑term squeezes when market direction reverses suddenly. Such imbalances imply that if ADA falls below $0.60, additional liquidations may accelerate declines toward the $0.50 zone.
For stabilization, traders are closely monitoring whether whale supply — as represented by Ali’s shaded area metric — flattens. A steadying of large‑holder balances coupled with ADA holding above $0.65 could establish a temporary floor. Sustained recovery above the $0.70–$0.72 range would then confirm renewed demand and potentially reintroduce bullish confidence after the recent volatility‑driven sell‑off.