Cardano's Price Surge Fades as Trader Interest and Whale Holdings Decline

Cardano's recent price surge is facing headwinds from fading trader interest and large-holder exits. The futures open interest for ADA has dropped 9% over the past week, sliding from $1.99 billion to $1.81 billion as traders cut back on leveraged bets, says Ali Charts on X.

Whales also appear to be taking profits, with large holders offloading roughly 90 million ADA, worth approximately $22.5 million, since September 20. This decline in demand aligns with a Tom DeMark Sequential sell signal that appeared on Cardano's daily chart.

According to the analyst, a parallel channel on the daily chart points to $0.24 as the key mid-range support. If ADA loses that level, a move toward the channel's lower boundary near $0.21 becomes likely.

Looking at Bitcoin, Ali says whales have cut their BTC holdings significantly over the last seven days. Bitcoin whale holdings have fallen by roughly 30,000 BTC, worth about $2.52 billion, as large holders appear to be reducing their exposure.