Cardano Price Forecast: ADA Plummets as Dormant Wallet Activity Sparks Major Selling Pressure
Sleeping giants awaken—and Cardano pays the price. ADA faces intensified selling pressure as long-dormant wallets suddenly spring to life, triggering a cascade of market movements that caught traders off guard.
The Ghosts of Bull Markets Past
When wallets that haven't moved since the last cycle suddenly activate, it sends shockwaves through the ecosystem. These legacy holders—sitting on substantial unrealized gains—finally decided to take profits, creating an oversupply situation that the current market depth simply couldn't absorb.
Technical Breakdown
Cardano's infrastructure continues to develop at breakneck speed, but price action tells a different story. The network's fundamental progress gets overshadowed by these whale movements, proving once again that in crypto, fundamentals often play second fiddle to pure market mechanics. Smart contracts can't stop sell orders.
Market Psychology at Play
Traders watch these dormant movements like hawks—the moment ancient wallets stir, everyone holds their breath. It's the crypto equivalent of seeing pension funds rebalance their portfolios, except with more dramatic price swings and fewer quarterly reports. Because nothing says 'healthy market' like panicking because someone decided to actually spend their digital money after four years.
Where From Here?
The selling pressure creates buying opportunities for believers, but tests the resolve of newcomers. Cardano's long-term narrative remains intact, but short-term pain reminds everyone that in this space, even the most promising projects can't escape basic economics—when supply outstrips demand, prices fall. Sometimes the oldest lesson is the one that hurts the most.
Dormant wallets are on the move
Santiment's Age Consumed index shown below hints at bearish signs. The spikes in this index suggest dormant tokens (tokens stored in wallets for a long time) are in motion, and it can be used to spot short-term local tops or bottoms.
As in the case of Cardano, history shows that a decline followed the spikes in ADA’s price as holders moved their tokens from wallets to exchanges, thereby increasing selling pressure. The most recent uptick on Monday suggested that ADA was ready for a downtrend.
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Cardano Age consumed chart. Source: Santiment
Apart from rising dormant activity, CryptoQuant data highlights selling pressure on Cardano. The Taker CVD (Cumulative Volume Delta) for Cardano turned negative in mid-August, and the value has been steadily decreasing since then. This indicator measures the cumulative difference between market buy and sell volumes over a three-month period. When the 90-day CVD is positive and increasing, it suggests the Taker Buy Dominant Phase, while a negative and decreasing value indicates the Taker Sell Dominant Phase.
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ADA Spot Taker CVD chart. Source: CryptoQuant
Cardano Price Forecast: Bears aiming for $0.76 mark
Cardano price broke below the ascending trendline (drawn by connecting multiple lows since early July) on Monday and declined 6.1% closing below the daily support at $0.84. At the time of writing on Tuesday, it continues its correction, trading at $0.81.
If ADA continues its downward trend, it could extend the pullback to retest its 50% price retracement level at $0.76 (drawn from the June low of $0.51 to the August high of $1.02).
The Relative Strength Index (RSI) on the daily chart reads 40, below its neutral level of 50, indicating bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) also showed a bearish crossover on Monday, signaling a sell and indicating bearish momentum and a downward trend ahead.
ADA/USDT daily chart
However, if ADA recovers, it could extend the recovery toward the daily resistance level at $0.84.
