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 rise in long liquidations mean for ADA’s outlook?
Long liquidations outpacing short positions appear to confirm strong bearish control.
Cardano (ADA) whales dumped approximately 350 million ADA over the past week, marking one of the largest sell-offs in recent months. Such coordinated selling often reflects short-term downside expectations or a desire to take profits after recent volatility.
Today, retail traders are trying to absorb some of the capital outflows. And yet, price momentum remains weak as selling pressure outweighs accumulation.
Therefore, this distribution phase could also hint at a slowing trend in institutional interest, leaving ADA vulnerable to further losses. Especially if the feeling does not improve during the next sessions.
Cardano defends key support as bears test descending channel
At the time of writing, ADA price was trading near $0.67 after testing the lower boundary of its descending channel around $0.65. This zone has historically served as a springboard for short-term rebounds. However, sellers remain active at the resistance levels near $0.73 and $0.87.
If buyers fail to protect this area, the next support would be around $0.53 – an area that could attract bargain hunters.
However, regaining momentum above $0.73 could invalidate the bearish setup – hinting at a potential reversal if bullish volume increases in the near term.
Source: TradingView
Open interest falls as traders withdraw from risk exposure
Cardano’s open interest fell 2.12% to $669.89 million, reflecting waning enthusiasm for leveraged markets. This contraction is also a sign that traders have closed their positions amid muted volatility and increasing caution.
The drop in Open Interest reflects the broader reduction in whale holdings, reinforcing that retail and institutional participants may take a defensive stance.
Such an environment typically precedes consolidation phases, during which liquidity tightens and speculative behavior cools before any lasting recovery in the futures landscape.
Source: Coinglass
Long Liquidations Expose Bearish Control on Stock Exchanges
Finally, liquidation data revealed that $1.13 million of long positions were wiped out, compared to just $187,000 of short positions. Such The imbalance indicated that the bulls lost a lot of ground as the downward pressure intensified.
Platforms such as Bybit and Binance recorded the highest liquidations, confirming that long traders faced forced exits.
The predominance of long liquidations appears to be in line with the decline in open interest rates – evidence of a market reset favoring sellers. If this trend persists, ADA could be in a prolonged correction phase for some time.
Source: Coinglass
Can ADA recover after the capitulation of whales and longs?
Cardano’s outlook remains cautious as whale sales, decreasing open interest, and liquidated long positions confirm a bearish bias. And yet, ADA price’s proximity to its lower trendline support offers a potential pivot for a near-term recovery.
For ADA to reverse this narrative, buyers must defend press time levels and decisively reclaim the $0.73 area.
Until then, the bears will have the upper hand. Sustained accumulation remains the main catalyst for any significant rebound.
