Key Takeaways

Why are Cardano whales selling 350 million ADA?

Large holders appear to be reducing their exposure due to declining market confidence and weakening bullish momentum.

What does the uptick in long liquidations mean for ADA’s outlook?

Long liquidations exceeding short positions seemed to confirm strong bearish control. 

Cardano [ADA] whales have dumped roughly 350 million ADA over the past week, marking one of the largest sell-offs in recent months. Such coordinated selling often reflects expectations of near-term downside or a desire to secure profits after recent volatility. 

Now, retail traders have attempted to absorb some of the outflows. And yet, the price momentum remains weak as selling pressure outweighs accumulation. 

Consequently, this distribution phase could also allude to a cooling trend in institutional interest, leaving ADA vulnerable to further losses. Especially if sentiment does not improve in the coming sessions.

Cardano defends key support as bears test the descending channel

At the time of writing, ADA’s price was trading near $0.67 after testing the lower boundary of its descending channel around $0.65. This zone has historically acted as a springboard for short-term rebounds. However, sellers remain active at resistance levels near $0.73 and $0.87.

If buyers fail to protect this area, the next support would be around $0.53 – A zone that could attract bargain hunters. 

However, regaining momentum above $0.73 could invalidate the bearish setup – Hinting at a potential reversal if bullish volume expands in the short term.

Open Interest falls as traders retreat from risk exposure

Cardano’s Open Interest dropped by 2.12% to $669.89 million, reflecting declining enthusiasm in leveraged markets. This contraction is also a sign that traders have been closi

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Author: Evans Boto