The cryptocurrency market witnessed a notable resurgence over the past 24 hours, with Cardano’s ADA following the green wave.
Nonetheless, the whales’ recent actions signal that a new correction might be knocking on the door.
The Bears Remain in Charge
ADA climbed above $0.27 today (March 4), gaining about 3% on a daily scale, though it remains down roughy 2% over the past week. Its decline during that period coincides with a sell-off by large investors.
The renowned analyst Ali Martinez revealed that whales have ‘redistributed’ 230 million tokens: a stash currently valued at around $63 million. This cohort of investors now controls less than 13.7 billion ADA, or roughly 37% of the asset’s circulating supply.
Since his graph shows a sizeable reduction in their holdings, it could be regarded as a significant sell-off that might weigh on the price for several reasons. They boost the amount of ADA available on the open market, and without a matching rise in demand, that extra supply can suppress the valuation. Whale distribution also signals weakening conviction among large holders, a shift that smaller investors may find worrying and cause them to cash out as well.
It is important to note that the behaviour of the big investors over the past week contrasts with their buying spree in recent months. As CryptoPotato reported, they purchased almost 820 million ADA between August 2025 and February this year.
Despite its daily resurgence, Cardano’s native token is still struggling to break out of its broader bearish pattern. Earlier this week, Martinez outlined $0.245, $0.112, and $0.051 as the next three lines of defense for the asset should it head south again.
Meanwhile, the popular trader Jake Gagain described ADA as one of his worst investments since entering the crypto market. His remarks sparked a heated debate, with some X users sharing his thesis, while others argued that his timing was bad and insisted that “the best is yet to come.”
The Bullish Signs
On the other hand, some technical indicators suggest Cardano’s native cryptocurrency could make a decisive comeback soon. For instance, ADA’s exchange netflows have been predominantly negative over the last few months. This means that investors continue to move coins from centralized platforms to self-custody, thereby reducing immediate selling pressure.
Next on the list is ADA’s Relative Strength Index (RSI), which has fallen below 30 on a weekly scale. The technical analysis tool ranges from 0 to 100, and readings above 70 signal that the asset is overbought and due for correction. Conversely, anything beneath 30 is considered a buying opportunity.
X user Sssebi noted the development, saying that “historically ADA has never been this oversold, which makes it one of the most undervalued projects.”
The post 230,000,000 ADA in 1 Week: Is Cardano Facing a Renewed Drop? appeared first on CryptoPotato.
