Cardano Price Drops To $0.50 After Whale Loss and Support Break - The Market Periodical

Key Insights:

• Cardano price slipped after a massive support breakdown and heavy whale losses.
• A dormant whale swap resulted in a $6.2M loss due to extreme slippage between ADA and USDA.
• Analysts monitor whale exits and broken levels as ADA trades near $0.50.

Cardano price is under clear pressure after several major events on the chain hit the market. Fresh whale action, a severe liquidity squeeze, and a pivotal break of support have all influenced the latest move. ADA trades around $0.50, with sentiment weakening amid exposure from large holders.

Cardano Price Weakens As Support Breaks

Cardano price is still under stress after losing a support zone that has held since 2024. The fall plunged ADA into a fresh local range and indicates higher downside risk. The clean break below $0.52 altered the structure and erased a significant bullish trendline. The zone attracted buyers for months, but supply eventually exceeded demand. The loss is now sentiment-defining and determines near-term expectations for traders.

Ali’s chart is showing a decisive move below a level that has been marked several times this year. ADA attempted many rebounds from the zone but was unable to maintain the momentum. Each bounce lost strength, while lower highs formed throughout the structure.

This pattern telegraphed the sellers’ control before the breakdown. Market participants are now watching the next demand zone at around $0.48. If this zone fails, the next level is closer to $0.44.

Support Breakdown Confirmed by Analyst

Furthermore, Ali pointed out that ADA broke a long-standing support level that had been in place for over a year. The analyst drew attention to a straight line under the chart, which has been touched several times since 2024. ADA’s recent candles closed firmly below the structure.

These closes confirm a breakdown rather than a simple wick deviation. The analyst suggested that this might be a significant move because the level is so old. ADA is now trading around the next major region, providing some margin for bulls.

One other major development Ali also revealed that whales sold 440 million ADA in just one month. This outflow is significant for the network and has led to a lack of confidence among some traders. The selling coincided with the chart’s weakening structure.

Whale exits can often signal changes in positioning before broader market participants respond. ADA’s downward trend is now a sign of both structural and behavioral weakness. Buyers need to regain lost ground to turn the tide. Until that happens, the chart remains bullish.

Whale Swap Triggers Sharp Liquidity Shock

Similarly, Lookonchain reported that a dormant whale wallet had made a large swap after being inactive for 5 years. The wallet sold 14.45 million ADA, which is more than $7 million. Due to low liquidity, the whale received only 847,694 USD. The transaction lost nearly $6.2 million. The result was extreme slippage on the swap dashboard price-impact alert. This result illustrates how liquidity can be quite thin when large trades are distorted.

The whale’s sell order also caused attention, as the tokens date back to the Genesis era. On-chain data indicates that the wallet’s ADA pool dates back to 2017. The tokens passed through several Cardano eras, moving from Byron to Shelley’s addresses. The whale handed control over to community pools since mid-2023, before the recent liquidation.

This history makes one more curious about the time of the sudden exit. Market watchers are now asking whether the swap represents deeper whale sentiment or a special case. Either way, the liquidity shock put pressure on an already weak market.

On-Chain History Provides Context

Meanwhile, analyst Bobcorn has researched the wallet behind the massive 14 million ADA swap. The analysis began with the Genesis Block in 2017. The wallet has received 11.6 million ADA in the first distribution phase.

Two weeks later, the money was transferred to a new address. The tokens would stay there through the Shelley-era transition in 2020. The wallet later moved the money again before delegating it to community pools in 2023. This movement map illustrates long-term holder behavior prior to the recent liquidation.

Bobcorn’s analysis helps put the whale’s final move into context, which caused the steep loss. This swap was not a recent accumulation. Instead, it was a multiyear position that was closed in a weak market. This history demonstrates the tendency for older holders to exit during periods of poor liquidity.

Such exits can generate high slippage and bring down local sentiment. The ADA’s trend now is characterized by structural breaks, selling whales, and a lack of confidence. The Cardano price remains sensitive to on-chain developments, as traders closely monitor key levels.