- Cardano extended its losses as whales sold 190 million ADA, increasing selling pressure across the market.
- Bearish derivatives data and key technical resistance suggest ADA could face further downside unless buyers regain control.
Cardano (ADA) remained under pressure on Wednesday, extending its losing streak to four consecutive days as investors reacted to increased whale selling and weakening market sentiment. On-chain data and derivatives indicators suggest sellers continue to dominate, raising the possibility of additional downside if buying interest does not return.
ADA is currently trading below key technical levels, while large investors continue reducing their holdings.
Cardano Whales Increase Selling Pressure
Recent on-chain data from Santiment shows that several groups of Cardano whales have resumed selling after last week’s brief recovery.
Wallets holding between 100,000 and 1 million ADA, 1 million to 10 million ADA, and 10 million to 100 million ADA have collectively sold around 190 million ADA tokens since July 1.
Large transactions from whales often attract market attention because they can increase selling pressure and weaken investor confidence. The latest wave of selling has added to the challenges already facing Cardano during its recent decline.
Bearish Derivatives Data Supports Weak Outlook
Derivatives data also points to growing caution among traders.
According to CoinGlass, Cardano’s long-to-short ratio has dropped to 0.79, one of its lowest readings in more than a month. A ratio below one means more traders are opening short positions than long positions, reflecting expectations of further price declines.
At the same time, Cardano’s open interest-weighted funding rate has turned negative. This means short sellers are paying long traders, a market condition that usually signals bearish sentiment.
Together, these indicators suggest many traders expect ADA to remain under pressure in the near term.
Cardano Price Faces Important Resistance
From a technical perspective, Cardano continues trading below its 50-day, 100-day, and 200-day EMA’s. These levels currently act as resistance and continue to limit any recovery attempts.
ADA is also trading within a key Fibonacci retracement zone. The price recently struggled near the $0.173 resistance level, while stronger resistance sits around $0.185 and $0.195.
Meanwhile, technical indicators present a mixed picture. The Moving Average Convergence Divergence (MACD) has turned positive, suggesting buying activity is improving. However, the Relative Strength Index (RSI) remains close to the neutral 50 level, indicating buyers have not yet gained full control.
If Cardano fails to move above the $0.173 resistance area, sellers could push the price toward the important support level at $0.150. A deeper decline could expose the next support around $0.138.
For now, Cardano’s short-term outlook remains cautious. Continued whale selling, weak derivatives data, and strong overhead resistance suggest ADA may struggle to stage a meaningful recovery unless buying demand strengthens.
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