Cardano’s (ADA) recent surge in price is facing new challenges as trader interest wanes and large holders start to exit.
The futures open interest for ADA has decreased by 9% in the past week, dropping from $1.99 billion to $1.81 billion as traders reduce their leveraged bets, according to Ali Charts on X.
Moreover, whales seem to be cashing in on their profits.
“Since September 20, significant holders have sold approximately 90 million ADA, valued at around $22.5 million, contributing to the recent selling pressure.”
This decrease in demand coincides with a Tom DeMark Sequential sell signal on Cardano’s daily chart.
“Since then, ADA has declined by 10%, and the correction might not be over yet.”
As per the analyst, a parallel channel on the daily chart indicates $0.24 as the crucial mid-range support.
“If ADA breaks below that level, a move towards the channel’s lower boundary around $0.21 becomes probable.”
If $0.21 holds, it could present the next buying opportunity, aiming for the channel top near $0.28.
Regarding Bitcoin, Ali notes that whales have significantly reduced their BTC holdings over the past week.
“While most of the market has been stagnant, what have whales been up to during this period of inactivity?”
Bitcoin whale holdings have decreased by approximately 30,000 BTC, equivalent to about $2.52 billion.
It seems that large holders are trimming their exposure.”
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