• Cardano (ADA) is facing continued downward pressure as whales offload 120 million tokens and DeFi investors withdraw funds, signaling weakening market confidence.
• Despite some spot market accumulation, bearish sentiment and declining metrics suggest the downtrend may persist.

Cardano (ADA) is under heavy selling pressure once again—and this time, it’s the whales leading the charge. Over the past 48 hours, large holders offloaded a staggering 120 million ADA, casting serious doubt on the asset’s short-term price stability. Historically, such major sell-offs are strong indicators of waning investor confidence, and that sentiment appears to be spreading.

Derivatives Market Signals More Pain Ahead

The impact of this sell-off extends beyond the spot market. Open Interest in Cardano’s futures and options dropped by 1.01% and 0.27% respectively in the last 24 hours, signaling a retreat from speculative positions. A decline in Open Interest often reflects long liquidations and general uncertainty—both of which are red flags for a bullish rebound.

Even more concerning is the long-to-short ratio, which has dipped below 1 to 0.9767. This indicates that sellers are currently dominating the market, pushing the probability of continued downside higher unless sentiment quickly reverses.

DeFi Investors Are Pulling Out Too

Cardano’s DeFi ecosystem is also showing signs of stress. The Total Value Locked (TVL) across its protocols has dropped from $319.58 million to $304.04 million—a $15.54 million plunge. As DeFi users withdraw their ADA, this further amplifies the downward momentum, adding to the pressure already being created by whales and derivatives traders.

Some Traders Are Still Accumulating—But Will It Matter?

Interestingly, not all is bearish. Spot market traders have been accumulating ADA, moving $11.23 million worth into private wallets in the past week. This follows the previous week’s $44.75 million inflow. While this may suggest growing long-term confidence, it’s unlikely to reverse the trend unless the broader market shifts in a bullish direction.

Caution Still Rules the ADA Market

With large holders dumping tokens, bearish signals across the board, and weakening DeFi metrics, Cardano’s downtrend may still have room to run. Until we see stronger support from derivatives and DeFi investors, any bullish accumulation may remain just a flicker in the dark.