Cardano Whale Exodus: 230 Million ADA Dumped in Days—Is a Deeper Crash Coming?

Whales just flipped the script on Cardano—230 million ADA tokens bought this week hit the market in a fire sale. The move reeks of panic, and retail traders are left holding the bag.

Blood in the water?

The sudden dump puts massive downward pressure on ADA's price. With no institutional backstop (because let's face it—crypto markets have the risk management of a Vegas roulette table), the next support level might not hold.

History rhymes

This isn't Cardano's first rodeo with whale-driven volatility. The network's 'academic rigor' clearly doesn't extend to trader discipline. Meanwhile, Charles Hoskinson keeps building—whether anyone's buying is another question.

Silver lining for degens?

If you believe in 'buy when there's blood in the streets,' this could be your moment. Just remember: in crypto, the streets are usually paved with margin-called accounts.

Cardano whales offload recently acquired 230 million ADA

Santiment data shows that investors with 100 million to 1 billion ADA acquired a total of 230 million ADA on Monday, boosting the total to 3.40 billion ADA from 3.17 billion ADA. However, in a quick sell-off, investors offloaded the acquired 230 million ADA by Wednesday. As of Friday, the holdings of these large investors total 3.18 billion ADA.

Notably, the holdings of investors with more than 1 billion ADA have increased by 180 million ADA so far in June. The increased volatility in cardano whale holdings suggests shaken confidence. 

Charles Hoskinson plans to transform the Cardano treasury 

In a podcast with David Gokhshtein, Charles Hoskinson, the founder of Cardano, emphasized his plan to boost the stablecoin supply on the network. The founder said, 

“So my proposal is, why don't we take about $100 million worth of ADA, convert it, put half into stablecoins in a blended package that are Cardano-native stablecoins and then the [other] half into Bitcoin."

The plan advances to utilize the yield generated from the investment to purchase ADA and donate it to Cardano’s treasury. Charles advises that this will boost the treasury, transforming it from an unmanaged single-asset on-chain system to a managed off-chain treasury with out-of-band governance.

Cardano Price Forecast:  ADA eyes further losses

Cardano drops by over 1% at the time of writing on Friday, printing its fifth consecutive bearish candle on the daily chart. Following a triangle breakdown, ADA slides below the $0.5946 support level marked on April 16.

A closing below $0.5946 could increase the downside risk of testing the $0.5110 year-to-date low. Investors could witness the declining ADA trend approaching the $0.50 psychological support level. 

The Moving Average Convergence/Divergence (MACD) further declines into negative territory alongside its signal line, indicating a sustained rise in bearish momentum. 

The Relative Strength Index (RSI) at 31 edges closer towards the oversold zone, suggesting an increase in selling pressure. 

On the contrary, if ADA sustains above $0.5946, sidelined investors could witness Cardano reverse towards the weekly opening of $0.6333.