Cardano Slumps as Investors Dump 120M ADA in 48 Hours
Summary at a Glance
In the past 48 hours, so-called “whales” – large investors holding significant amounts of ADA – have sold approximately 120 million Cardano (ADA). This massive wave of selling has put downward pressure on the price. At the same time, key metrics in the derivatives market are showing a declining trend. In the DeFi sector (decentralized finance applications) on the Cardano blockchain, investors are also withdrawing capital. Despite isolated purchases in the spot market, the overall market sentiment remains negative.
Whales Offload ADA on a Large Scale
In a short period of time, major investors have offloaded 120 million ADA. Such sales indicate a lack of confidence in short-term performance. When influential investors reduce their positions, it can unsettle other market participants and trigger further sell-offs.
Decline in Derivatives Market Reinforces Downward Trend
In the derivatives market, which includes futures and options contracts, open interest – a measure of outstanding positions – has decreased. Over the past 24 hours, open interest in futures dropped by 1.01% to USD 697.15 million, and in options by 0.27% to USD 374,920. A decline in open interest suggests that positions are being closed. This could be due to a lack of market confidence or so-called long liquidations – the forced closing of buy positions as prices fall.
Long-to-Short Ratio Below 1
Another indicator of selling pressure is the long-to-short ratio. When this value is below 1, sellers dominate the market. Currently, the ratio stands at 0.9767 – a sign of an overweight in short positions. As long as this value does not rise above 1, the downward trend is likely to continue.
DeFi Investors Withdraw Capital
The DeFi sector on the Cardano blockchain is also showing a downward trend. The “Total Value Locked” (TVL) metric, which represents the total value of assets locked in DeFi protocols, has fallen from USD 319.58 million to USD 304.04 million. This represents a decrease of USD 15.54 million. If this trend continues, selling pressure could intensify further.
Spot Market Shows Slight Countertrend
Despite the overall negative sentiment, there are signs of long-term interest in the spot market – the direct trading of ADA. In the past seven days, ADA worth USD 11.23 million has been purchased and transferred to private wallets. The previous week, this amount was even USD 44.75 million. These purchases suggest that some investors believe in ADA’s long-term potential. However, this demand is currently not sufficient to reverse the general downward trend.
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Our Assessment
The current market situation for Cardano (ADA) is clearly marked by selling pressure. The actions of whales, the decline in the derivatives market, and falling values in the DeFi sector all point to a continuation of the downward trend. Although some investors are accumulating ADA in the spot market, this is not currently enough to initiate a trend reversal. Anyone considering investing in ADA should closely monitor market sentiment and technical indicators. Entry may be worthwhile if metrics stabilize or early signs of recovery appear. Until then, caution is advised.
| Symbol | ADA |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.65 |
| 24h % | -1.49 % |
| 7d % | -3.41 % |
| 30d % | -28.44 % |
| 60d % | -14.20 % |
| 1y % | 12.99 % |
| Market Cap | $23,344,315,093.00 |
| Max. Supply | 45,000,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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