Cardano's large wallets are cutting positions after a local rally stalled, and the exit has produced a death cross on the token's chart. Analyst Ali Martinez says the pullback could deepen toward $0.17 and, in a worse case, $0.144.
Cardano's biggest holders are backing away from ADA just as the token's chart flashes new warning signs. Blockchain analyst Ali Martinez found that wallets holding between one million and ten million ADA fell from 2,370 to 2,340 in nine days.
Whales retreat after the local peak
ADA had run up alongside the return of large investors, who scooped up more than 240 million coins in less than a week at the start of August. That demand pushed the token's price to almost $0.21, its highest level since early June, before it began giving ground back.
The reversal has since accelerated. ADA failed to hold above its local high of $0.202 and slipped to $0.188. According to Martinez: "some large holders may be taking profits or redistributing after the recent price increase"
A death cross and a sell signal add pressure
Cardano's MVRV ratio has crossed below its seven-day simple moving average, forming a death cross on the token's chart. Martinez says the shift points to weakening momentum and raises the risk of a deeper correction. At the same time, the TD Sequential indicator has printed a sell signal on ADA's daily chart.
Martinez has laid out two scenarios from here. If the current pressure persists, ADA could slide toward the mid-range support level of $0.170; a deeper breakdown could expose the critical bottom near $0.144.
An ETF setback, but softer selling on exchanges
The setup isn't helped by Grayscale withdrawing its ETF filing for three altcoins, including Cardano, removing a catalyst bulls had been counting on. Still, exchange outflows have surpassed inflows over the past several days, suggesting some holders are moving ADA into self-custody rather than selling it outright.
Sources: U.Today, CryptoPotato
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