Cardano Faces Bearish Signals as Futures Demand Cools and Whales Sell Off
Cardano's recent price surge has run into fresh headwinds as futures demand cools and whales sell. The decline in demand is evident in the drop in futures open interest for ADA, which has decreased 9% over the past week from $1.99 billion to $1.81 billion. Traders have been cutting back on leveraged bets, as noted by Ali Charts on X.
Whales, or large holders, have also been taking profits. Since September 20, they have offloaded roughly 90 million ADA, worth approximately $22.5 million. This selling pressure has contributed to Cardano's recent price decline.
A Tom DeMark Sequential sell signal has appeared on Cardano's daily chart, which has led to a 10% price drop. According to Ali, a parallel channel on the daily chart indicates that $0.24 is a key mid-range support level. If ADA loses this level, a move towards the channel's lower boundary near $0.21 becomes likely.
Meanwhile, Bitcoin whales have also been reducing their exposure. Over the past seven days, they have cut their BTC holdings by roughly 30,000 BTC, worth about $2.52 billion.