Cardano (ADA) Price Alert: Whale Holdings Stagnate as On-Chain Volume Dries Up – Is a Sell-Off Imminent?

Cardano's ADA flashes warning signs as whale activity flatlines and network volume tanks. The 'Ethereum killer' might be killing time instead.

Whales Hold While Retail Flees

Big-money ADA holders aren't budging – but the lack of movement speaks volumes. Meanwhile, on-chain transactions are evaporating faster than a DeFi rug-pull artist's reputation.

The Sell Signal Nobody Wants

Technical indicators scream caution, yet the crypto faithful cling to hopium. Remember when 'fundamentals' mattered? Neither does the market.

Cardano's make-or-break moment arrives as the smart contract platform faces its toughest test yet: proving it's more than just a whitepaper wonder. (Spoiler: Your bags won't hodl themselves.)

Network volume declines post-profit booking surge 

Cardano on-chain data indicates a decline in network activity following a profit-booking spree on July 25. According to Santiment, the Network Realized Profit/Loss recorded a massive spike of 143.63 million ADA, indicating investors booked profits. 

Since the booking, the transaction volume has dropped to nearly $744 million on Tuesday, down from $1.69 billion on July 25. As transaction volume encompasses all on-chain activity, a decline indicates a slowdown in the network. 

Cardano on-chain data. Source: Santiment

However, the low-volume user base has returned, with daily active addresses rising to nearly 31,000, exceeding the 28,248 addresses that were active on July 25.

Cardano whales fuel selling pressure 

Large-wallet Cardano investors have been trimming their holdings since the profit-booking spree. Investors with 1 million to 100 million ADA have offloaded their holdings to 18.51 billion ADA, from 18.9 billion ADA on July 24. The 390 million ADA supply drop fuels selling pressure on Cardano.

ADA supply distribution. Source: Santiment

It is worth noting that investors with over 100 million ADA have acquired an additional 450 million ADA, increasing their holdings to 5.36 billion ADA. However, the difference in the total holding of these large-wallet investor groups indicates a greater risk of sell-off pressure from investors with holdings of 1 million to 100 million ADA. 

Cardano eyes further losses in a falling channel pattern

Cardano reverses from an overhead resistance trendline of a falling channel pattern on the 4-hour chart (shared below). ADA edges lower for the second consecutive day as the declining 50-period EMA on the same chart nears the 200-period EMA, increasing the death cross chances. Sidelined investors could consider this a sell signal as the short-term decline undermines the longer-term trend. 

The declining trend targets the $0.6884 support level, last tested on Sunday, suggesting further losses. 

The Relative Strength Index (RSI) reads 40 on the 4-hour chart, indicating a decline in buying pressure and suggesting room for further downside movement before reaching the oversold zone. Furthermore, the Moving Average Convergence Divergence (MACD) line crosses below its signal line, indicating a bearish turnaround in trend momentum. 

ADA/USDT daily price chart.

Looking up, cardano should surpass the 200-day EMA at $0.7417 near the overhead trendline, which would mark the falling channel breakout.