Cardano falls below $0.175 as whales offload 50M tokens

Key developments

• Cardano (ADA) traded at below $0.175 on Monday following a drop of more than 9% last week.
• ADA whales, whose holdings range from 10 million to 100 million tokens, have shed roughly 50 million coins since 4 November, a sign of flagging conviction.
• ADA's decline may stretch to $0.156 given the ongoing bearish technical signals, with the immediate resistance barrier at $0.183.

ADA continued to face selling strain on Monday, trading at roughly $0.1748, marking a fifth straight week of declines.

The token's loss of over 9% last week added to a slide that started at the beginning of October, with sell orders persistently exceeding purchase demand.

Whales sell 50 million Cardano tokens

The biggest participants in Cardano's market have trimmed their stakes further, fuelling worry over the token's short-term trajectory.

Data from Santiment's Supply Distribution report shows that addresses containing 10 million to 100 million ADA jointly shed around 50 million units from 4 November onward.

The reduction points to growing wariness among this cohort of larger holders given ADA's drawn-out price softness.

Beyond the whale activity, Cardano's wider on-chain and exchange metrics still convey a guarded market mood.

CryptoQuant's overview of the market flags substantial whale orders in ADA's spot and futures venues, alongside overheating indicators and a predominance of selling.

Taken together, the signals imply that while large players are still engaged, sellers still outpace buyers.

ADA technical view: bears eye the $0.156 mark

The technical picture for Cardano stays bleak as the digital currency labours to bounce back from five weeks of uninterrupted drops.

On Monday at press time, ADA was near $0.1748, trading well beneath its key Exponential Moving Averages.

The 50-day EMA sits at $0.209 and the 100-day EMA at $0.211, while the longer-term 200-day EMA is a good deal higher at $0.232.

The latest bounce from levels under $0.180 has barely altered the broad technical layout, hinting the rise might be a transient settling rather than the start of a lasting uptrend.

Momentum gauges likewise imply ongoing frailty. The daily RSI lingers near 30, edging into oversold ground and signalling that sell-side force is still in charge.

Similarly, the MACD indicator stays marginally below zero, confirming the guarded view.

Should ADA fail to draw more robust purchase interest, vendors may drive the price down to the horizontal support mark of $0.156.

A clear break beneath this zone would further erode the technical structure and could leave ADA open to a steeper decline.

Yet ADA might mount a short-term recovery if buyers hold existing price floors. The first key barrier is $0.183, which the token has to recapture to achieve an early momentum gain.

A durable push above that mark could prompt buyers to aim for the 50-day EMA of $0.209 and then the nearby 100-day EMA of $0.211.

But those averages constitute a dense resistance band that might draw fresh selling.

Past this zone, the 200-day EMA near $0.232 is a further significant barrier. Extra resistance points sit at $0.236 and $0.245, and a larger bounce might eventually put the $0.296 area on the radar.