Cardano Faces Declining Sentiment as Whales Sell 170 Million ADA, Price Trends Lower

Cardano’s recent performance has taken a hit, as some of its largest holders, or “whales,” begin to offload significant portions of their holdings. On-chain data reveals that ADA whales with between 100 million and 1 billion coins have sold over $160 million worth of the cryptocurrency in the past week. This large-scale distribution is contributing to an already fragile market, intensifying concerns about Cardano’s price prospects shortly.

Whale Sell-Off Sparks Negative Sentiment

Recent reports from Santiment indicate that Cardano whale addresses holding between 100 million and 1 billion ADA have sold a combined total of 170 million coins. At current market prices, this sale is valued at over $106 million. This massive sell-off marks a significant shift in sentiment among Cardano’s major holders. By offloading such a large volume of tokens, these whales are signalling a lack of confidence in the asset’s near-term prospects, further pressuring the ADA market.

The sell-off is not only impacting large holders but could also influence retail traders to follow suit. As the pressure mounts, it becomes increasingly difficult for Cardano to break free from its downward trend, thereby reducing the likelihood of a price rebound in the near future.

Negative Sentiment Persists Across the Market

The growing bearish outlook for Cardano is further confirmed by the asset’s weighted sentiment, which currently stands at -0.20. Santiment, a leading on-chain data provider, monitors social media and online platforms to gauge overall sentiment surrounding an asset. A value below zero, like the current figure for ADA, indicates that discussions and attitudes toward the coin are predominantly negative.

Since March 8, ADA’s weighted sentiment has remained below zero, reinforcing the ongoing pessimism surrounding the coin. As this negative bias persists, there is a growing risk that ADA could continue to experience prolonged price declines. With fewer traders willing to re-enter or increase their positions, the selling pressure is likely to persist, adding to the challenges facing ADA in regaining market momentum.

Technical Indicators Confirm Bearish Momentum

Technical indicators also align with the negative sentiment surrounding Cardano. The Relative Strength Index (RSI) for ADA currently sits at 46.47, a key momentum indicator that tracks the market’s overbought and oversold conditions. When the RSI is above 70, it signals that the asset is overbought and may be due for a decline. Conversely, when the RSI falls below 30, it indicates that the asset is oversold and may experience a rebound.

At 46.47, ADA’s RSI is in neutral territory but tilted downward, reinforcing the bearish outlook. Without significant buying pressure to shift momentum, ADA may continue to struggle, with its price potentially falling to the $0.50 level in the near term.

Related article: Cardano Struggles to Hold $0.64 as Volume Dips Nearly 4%

Conclusion: Challenges Ahead for Cardano

Cardano is facing a tough road ahead, as its whales continue to sell off significant amounts of ADA, contributing to a broader bearish sentiment in the market. With negative sentiment persisting and technical indicators indicating weakening momentum, it is challenging to envision a clear path to recovery for ADA in the short term. Traders and investors will need to monitor the market for any signs of a reversal closely, but for now, the pressure on Cardano’s price remains substantial.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.