Cardano Inflows Reach 3-Month High But Whale Selling Stalls Price Recovery

• Cardano’s Chaikin Money Flow hits a three-month high, indicating strong investor activity.
• Whales have sold 180 million ADA, valued at over $120 million, hindering price growth.
• ADA struggles to maintain $0.66 support level with bearish pressure from whales.
• Despite strong retail interest, Cardano faces resistance from large holders selling ADA.

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Cardano’s price has seen a surge in investor interest, with capital inflows reaching a three-month high. Despite this, the price of ADA has struggled to maintain upward momentum, primarily due to continued selling pressure from large holders. As smaller investors remain active, larger holders seem to be blocking any short-term recovery. This creates uncertainty about whether ADA can break through its current resistance levels and establish a solid rebound.

Strong Inflows Signal Investor Confidence

Recent data reveals a sharp rise in Cardano’s Chaikin Money Flow (CMF) indicator, which tracks the volume of money flowing into and out of an asset. This rise suggests that retail investors are actively purchasing ADA, drawn by its discounted price following recent market downturns. The CMF has hit a three-month high, which typically signals strong buying interest and potential accumulation phases that precede price recovery.

Despite these inflows, ADA’s price has not shown significant movement upward. The market’s broader recovery has not translated into meaningful gains for Cardano, suggesting that while retail participation is high, it has not been enough to push the price higher.

Whale Selling Puts Pressure on Price

While retail investors have been buying, large holders, or “whales,” have continued to sell their ADA holdings. Data from recent transactions indicates that addresses holding between 10 million and 100 million ADA have offloaded approximately 180 million tokens.

This amounts to more than $120 million in sales. While these amounts may not drastically affect the total supply, they have been significant enough to hinder ADA’s recovery.

Whales often have a large influence on short-term price movements. Their decision to sell suggests a lack of confidence in ADA’s ability to rise in the near term. Even as smaller investors are buying into the asset, the selling pressure from large holders is weighing on the price and preventing the market from gaining momentum.

ADA Price Faces Key Support Level

At the time of writing, Cardano’s price is hovering around the $0.66 support level. This level is crucial for ADA to hold in order to avoid further declines. If the price drops below this point, it could trigger additional selling, potentially pushing the price down to $0.60 in the coming days.

A sustained drop below this support level would signal continued bearish sentiment, making it more difficult for ADA to regain upward momentum. The role of whales in controlling the price action could further complicate the outlook, as their selling may continue to dominate market sentiment.

Potential for Rebound If Support Holds

Despite the current bearish pressure, there is a potential for ADA to rebound if it can maintain its position above the $0.66 support level. If the asset attracts new buying interest from both retail and institutional investors, it may be able to move above the $0.69 resistance and possibly reach $0.75.

Such a recovery would require a shift in sentiment, particularly from large holders, who would need to stop offloading their tokens. If this occurs, ADA could see a more sustainable increase in price, but for now, the selling pressure from whales continues to limit its potential for a quick rebound.

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