Cardano's price fell 15% in seven days to $0.233 as large holders sold more than 110 million ADA and daily active addresses dropped 41.36%. Futures traders lean bearish, and analysts watch support near $0.23 and $0.24.
Cardano (ADA) is down 15% in seven days, trading at $0.233 at the time of writing. The drop coincides with selling by large addresses, falling network activity and bearish sentiment among futures traders.
Whale selling meets weaker network activity
Analyst Ali Martinez says large holders sold more than 110 million ADA within five days since October 8. These whales are selling as network use declines.
The number of daily active addresses dropped from 27,248 to 15,977, a 41.36% decline. However, DeFiLlama data shows Cardano's DeFi total value locked rose from 257.43 million ADA on October 6 to 279.88 million at the time of writing.
Cardano also set a transaction record during Epoch 660, when the network handled 1,780,896 transactions, beating the previous high of 1,566,974 from November 2021.
Futures traders lean short
CoinGlass data shows 24-hour long volumes of $342 million against $383 million in short volumes. Cardano's long/short reading has dropped to 0.86 and has stayed below 1 since October 5.
CoinGape adds that increased short positioning could also trigger a short-selling event if a sudden price surge forces short sellers to close their positions.
Price tests the 200-day EMA
On the one-day chart, Cardano closed below the 200-day EMA yesterday and is now testing it as resistance. A drop below the support level at $0.23 could trigger another decline to $0.20, according to CoinGape.
Martinez, meanwhile, says a break below $0.24 could push ADA toward $0.21, near the lower boundary of its rising channel.
Sources: CoinGape, CryptoPotato
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