Cardano prices have been under pressure over the past few days, with ADAs lowering as bearish momentum builds.
The decline is heading towards a potentially large drawdown, especially as long-term holders (LTHS) have moved to sell to weaknesses. However, whales are intervening to offset this sales activity.
Cardano whale tries to save Ada
Long-term Cardano holders have recently shown signs of doubt and are about to sell the ADA during a wider market slump. Data on the chain reveals that sales activity reaches 2 months’ height, indicating changes in emotions among this typically stable cohort.
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Sales by LTHS are concerns as the group is known to have a strong impact on price trends. When their confidence fades, it often leads to an extended decline. Their actions underscore the growing skepticism that can place emphasis on the short-term performance of the ADA.
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Whales, meanwhile, are working to offset this pressure. In just three days, when ADA prices weaken, 100-1 billion ADAs hold that they have accumulated over 460 million tokens. This influx was worth more than $375 million at the time of writing.
Such accumulation highlights the whales’ beliefs in Cardano’s long-term potential. By absorbing the supply LTHS sells, these large investors are trying to stabilize ADA prices. Their activities may prove important in halting further negative side momentum and ensuring that the ADA does not fall below critical support.
ADA prices may witness corrections
Cardano’s price structure now shows the formation of a double-top, a bearish chart pattern. The neckline is $0.80 and the ADA is hovering just above $0.81, with little margin before a potential breakdown.
If your ADA is below $0.80, you can see a double top, which means your AltCoin is lower. This brings the price target to $0.69, down nearly 14% from current levels, indicating a significant bearish continuation.
However, if whale accumulation turns out to be effective, the ADA can bounce back $0.80 and regain $0.83. A critical move beyond this level paves the way for $0.90, invalidates bearish papers and restores short-term optimism among traders.
