- Whale Sell-Off: 180 million ADA dumped, dropping whale holdings from 3.5B to 3.32B.
- Ownership Shifts: Whale holdings fell 1.68%, while mid-sized investors rose by 1.60%.
- Netflow Plunge: Large holder netflow declined 90.29% in 7 days, signaling bearish pressure.
Cardano ($ADA) has been struggling to gain ground as whales offloaded a massive 180 million tokens this past week, contributing to a 9.62% drop in the token’s price. Currently trading at $1, ADA is far from its all-time high of $3.09, and the recent price action suggests user engagement might be waning, with the token stuck in a tight trading range.
While ADA has seen a 3.38% gain in the last 24 hours, that short-term rise doesn’t erase the broader downward trend.
Cardano Whale Activity
Data from Santiment, highlighted by analyst Ali Martinez, paints a clear picture of how whale activity has influenced ADA’s price movements.
Between early and mid-December 2024, ADA slid from $1.12 to below $0.90. Interestingly, during this drop, wallets holding between 100 million and 1 billion ADA remained relatively stable.
Things changed from late December to early January 2025, as ADA bounced erratically below $1.00. During this period, whale holdings hovered under 3.34 billion ADA. However, a dramatic shift occurred between January 3 and January 14 when ADA surged from $0.85 to over $1.10. During this bullish phase, whale holdings jumped from 3.2 billion to over 3.5 billion ADA.
But this week, the narrative flipped. After reaching $1.16, ADA prices dropped back to $0.99, and whale balances fell sharply from 3.5 billion ADA to 3.32 billion ADA. In total, whales offloaded over 180 million ADA tokens this week, intensifying selling pressure.
Negative Ownership Trends Among Whales
Further supporting these observations, data from IntoTheBlock shows how ADA’s ownership distribution has shifted among whales, mid-sized investors, and retail traders.
Whale holdings declined by 1.68% over the past week, while mid-sized investors upped their stakes by 1.60%. Retail traders also increased their holdings by 0.72%, signaling growing participation from smaller investors.
While this shift toward broader market participation might suggest confidence, it also introduces the risk of increased volatility if these new investors decide to sell during price swings.
Persistent Outflows from Large Holders
Netflow data from Cardano’s large holders reveals even more bearish signals. Over the past seven days, netflow dropped by 90.29%, with the 30-day figure showing an even sharper decline of 94.46%.
Looking at a longer timeframe, the trend becomes even more pronounced. Over the past 90 days, netflow changes reached a staggering -7,284.93%, highlighting sustained outflows from major investors offloading their ADA holdings.
Final Thoughts
The sustained selling pressure from whales, combined with fluctuating retail participation, paints a mixed picture for Cardano. While broader adoption among smaller investors may provide some stability, the persistent outflows from large holders signal bearish sentiment that could drive further volatility in the near term.
