- Large holders reduced ADA holdings from 6.05B to below 5.8B, suggesting profit-taking or declining confidence in short-term prices.
- ADA’s price declined from $0.83 to $0.673 in March, with resistance at $0.706 and $0.746, indicating bearish pressure.
- Despite short-term volatility, negative exchange netflows suggest long-term holders are accumulating ADA for potential future gains.
Cardano (ADA) had an unstable March as large holders offloaded nearly 200 million ADA tokens, according to analyst Ali. ADA’s price had a notable decline, dropping from $0.83 on March 8 to $0.673 by April 1.
Whale holdings also fell, indicating potential profit-taking or declining confidence. Technical indicators show bearish pressure, while trading volume and market behavior suggest mixed sentiment.
Whales Exit as ADA Prices Decline
ADA’s price movements in March had increased volatility. The token started the month near $0.83 before falling sharply below $0.71 by March 12.
It then fluctuated between $0.71 and $0.78, with notable swings around March 18 and March 25. By April 1, ADA had dropped to $0.673, continuing its bearish movement. Large holders, owning between 1 million and 10 million ADA, significantly reduced their positions.
Initially holding over 6.05 billion ADA, these wallets saw a decline in accumulation, dropping below 5.8 billion ADA by April 1. The reduction in whale holdings indicates either profit-taking or reduced confidence in ADA’s short-term price outlook.
Exchange Netflows and Market Trends
Market trends show shifting behaviors among investors. Exchange netflow data shows both accumulation and selling pressures. Positive netflows, where more ADA enters exchanges, suggest increased selling interest.
Negative netflows indicate accumulation, as tokens move out of exchanges to private wallets. Substantial positive netflows in late February coincided with a sharp price drop, suggesting large sell-offs.
However, since November, negative netflows have dominated, correlating with ADA’s price recovery. Recent data shows continued negative netflows, implying long-term holders are accumulating despite short-term volatility.
ADA’s price history shows strong fluctuations. After surging from $0.30 in November to $1.41, it entered a cooling phase, now trading around $0.60 levels. For a sustained bullish reversal, ADA must reclaim the $0.90–$1.00 range, while key support levels are at $0.50 and $0.45.
Technical Indicators Show Key Resistance Levels
Cardano’s price is under key moving averages, indicating a prolonged bearish trend. The token tested resistance at $0.706, its 50-day moving average, but failed to break through. The 200-day moving average at $0.746 acts as a crucial long-term resistance level.
Daily active addresses peaked in November and January, aligning with price surges. However, recent activity declined to around 6,580 active addresses, suggesting reduced engagement.
Meanwhile, total open interest is steady at $238.19 million, with declines aligning with price corrections. At press time, ADA was trading at $0.6788, up by 4.72% in the past day but down 9.09% over the past week.
The token’s market cap is at $23.94 billion, with a 24-hour trading volume of $789.97 million, a 41.29% increase. ADA’s circulating supply is at 35.26 billion, with a max supply of 45 billion tokens.
