Cardano Whales Selling Into Weakness as Price Struggles to Recover

Cardano's price has been struggling to recover after a 10% decline in the previous week, and some of its largest holders are selling into weakness.

According to Santiment's Supply Distribution data, wallets holding between one million and 100 million ADA have collectively offloaded approximately 200 million tokens since August 11. In contrast, smaller whales have accumulated around 10 million tokens over the same period.

The imbalance in demand from smaller whales has not been sufficient to absorb the selling pressure created by top-tier holders. This suggests that there may be further price declines ahead for ADA.

Bearish derivatives positioning and weakening momentum indicators also indicate that traders remain cautious about Cardano's prospects. The long-to-short ratio on CoinGlass stands at 0.92, close to its lowest level in over a month, indicating more short positions than long positions.