Cardano Whales Sell 50 Million Tokens Amid Ongoing Price Decline

Cardano (ADA) is facing significant selling pressure as large investors, referred to as whales, have sold approximately 50 million tokens since November 4. This trend indicates a growing lack of confidence among major holders, coinciding with ADA's recent price decline of over 9% last week, trading around $0.1748.

According to data from Santiment, wallets holding between 10 million and 100 million ADA tokens have been actively reducing their positions, raising concerns about the cryptocurrency's short-term outlook. The ongoing bearish sentiment is further supported by technical indicators that suggest ADA could drop to a support level of $0.156 if buying interest does not increase.

In addition to the whale activity, Cardano's broader market indicators reflect a cautious atmosphere, with significant sell-side dominance noted in both spot and futures markets. The daily Relative Strength Index (RSI) is nearing oversold territory, while the Moving Average Convergence Divergence (MACD) remains slightly negative, reinforcing the bearish outlook.

Despite the current challenges, a potential recovery could occur if ADA manages to reclaim resistance at $0.183, which could lead to further upward movement towards the 50-day and 100-day Exponential Moving Averages at $0.209 and $0.211, respectively.

Cardano's Leios Scaling Progress and Future Outlook

In a separate development, Cardano's November 6 update highlighted advancements in the Leios scaling project. While progress has been made in areas such as endorser-block production and chain-selection checks, the update clarified that these developments are not yet ready for mainnet deployment.

The Leios project aims to enhance Cardano's processing capacity without compromising its consensus and security. However, the report emphasized that the work remains in the development phase, and no immediate improvements in throughput are guaranteed. The focus is on refining consensus code and developing supporting tools for developers.

As Cardano continues to navigate these challenges, both the whale sell-off and the ongoing development work will be critical factors to monitor for the future trajectory of ADA.