Concerns Arise as Cardano Experiences 18% Decline and Decreased Whale Activity – What’s Next?

• Cardano (ADA) has seen its price drop by 18% in the last week, leading to concerns about its future.
• Fewer whale investors in the market suggests a decrease in confidence.

Cardano (ADA) has experienced a significant price decline of 18% in just a week. This sharp drop in value is accompanied by a notable decrease in whale activity, with the number of whale addresses at its lowest level since January 9th. Together, these trends prompt serious questions about the future of Cardano and how it will navigate through a changing market landscape.

This situation raises the question: Is this just a temporary dip, or does it signal more serious challenges for the ADA coin?

ADA’s Recent Performance: Weakness Signals

In the past week, Cardano has seen a downward trend that began in early February. The daily price charts show a lack of strong support levels, reflecting bearish sentiment, with lower highs and lower lows. As of now, the Relative Strength Index (RSI) sits at 36.37, which is slightly above the oversold territory. This indicates waning buying interest but does leave some space for a possible short-term rebound.

Despite a brief moment where ADA dipped below $0.65 before partially bouncing back, the slight recovery indicates some defensive buying. However, without stronger demand, this uptick could be short-lived. The On-Balance Volume (OBV), which tracks buying and selling pressure, continues to decline and shows that selling remains dominant in the market.

Moreover, external factors are also impacting the price of ADA. A hack that resulted in $1.5 billion stolen at Bybit back in February 2025 shook investor confidence across the cryptocurrency market. This incident likely triggered a wider market sell-off, worsening the losses for Cardano.

Additionally, the plunge in whale activity is also contributing to these market fluctuations. Whales, or large investors, play an essential role in influencing price stability and liquidity. When they become inactive or start selling off their assets, like in the case of ADA, it can create a ripple effect throughout the market.

On the regulatory front, a recent acknowledgment by the SEC regarding a proposed Cardano ETF has created an air of uncertainty. While approval could lead to greater institutional acceptance in the long run, the current market speculation surrounding it could introduce further volatility in the short term.

Whale Participation: A Decrease in Confidence?

Recent data from Santiment shows that the number of whale addresses holding between 1 million and 10 million ADA has dropped to 2,454, marking the lowest point since January 9. This trend suggests that large holders are either selling off or showing reluctance to increase their positions, signaling a possible decrease in confidence regarding ADA’s near-term future.

Whale movement is a significant indicator of overall market sentiment, as these large investors often have a substantial impact on liquidity and affect the asset’s price stability. As their numbers dwindle, ADA may become more susceptible to volatility and downward pressure. If this trend continues, ADA may struggle to build robust support levels, reinforcing the ongoing bearish market trend. That said, a resurgence in whales could signal renewed investor confidence and potentially shift the market dynamics.

Changing Market Dynamics Ahead?

If the trend of declining whale addresses signifies a broader shift, it could have lasting implications for Cardano. A reduction in whale participation might lead to decreased liquidity for ADA, making the asset more vulnerable to extreme price fluctuations. Additionally, ongoing selling pressure from big investors could discourage institutional interest, limiting ADA’s potential for recovery.

On the flip side, if smaller investors begin to step in and take over the roles that whales previously held, the market structure for ADA might shift towards a more decentralized distribution model. The coming weeks will be key to determining whether this recent decline is just a short-term setback or signals more profound changes within Cardano’s investor landscape.