Cardano (ADA) faces potential correction as whale activity declines

Cardano (ADA) is facing potential downward pressure following a reduction in whale activity and weakening technical indicators. On-chain data shows that the number of wallets holding between 1 million and 10 million ADA has decreased from 2,370 to 2,340 since early August, suggesting that large investors may be realizing profits or redistributing assets after recent price increases.

Technical analysis highlights several warning signals. A ‘death cross’ has formed between the MVRV ratio and its 7-day simple moving average, indicating weakening momentum. Additionally, the Tom DeMark Sequential indicator has signaled a potential sell-off.

If these trends continue, analysts suggest ADA could see a correction toward the $0.170 support level. A breach of that level could lead to a deeper decline toward the $0.144 range. Currently, the price has already retreated from a local peak of approximately $0.202 to around $0.188.