Millions of ADA Sold by Cardano Whales During Market Crash – Will the Decline Continue?

TL;DR

• Cardano’s ADA dropped by double digits in a week, with whales offloading over 170 million tokens, potentially signaling more downward pressure.

• Hopes for a rebound rest on the potential approval of a spot ADA ETF filed by Grayscale, which could attract traditional investors and boost demand.

More Pain Ahead?

Cardano’s ADA was trading well above $0.80 towards the end of last week. However, the start of the new business week offered a lot of pain for the bulls, with the asset plunging to as low as $0.63 (per CoinGecko’s data). ADA slightly rebounded over the past several hours to the current $0.67. Still, this represents a 15% decline on a seven-day scale.

According to some factors, the negative trend could be far from over. The popular analyst, going on X as Ali Martinez, estimated that whales dumped more than 170 million ADA in the span of 96 hours. The stash equals almost $115 million (going at current rates).

Continued efforts of that type would create an influx of tokens on the open market, potentially overwhelming demand and having a negative effect on the price. Additionally, the whales’ actions are closely monitored by some smaller players who could follow suit and intensify the selling spree. 

Earlier this month, Martinez maintained that ADA’s most critical support stands between $0.67 and $0.70. “As long as this level holds, the bull run remains intact,” he claimed at the time. As mentioned above, though, the valuation briefly tanked below the depicted level. 

The Potential Price Catalyst

While the overall environment looks quite grim, one important factor might bring back the green candles. This is the possible launch of a spot ADA exchange-traded fund (ETF) in the United States, whose chances of approval before the end of 2025 have risen to 67% lately.

The improved odds result from the SEC’s acknowledgment of Grayscale’s application to introduce such an investment vehicle. 

The product will allow investors to gain exposure to ADA without needing to directly purchase, store, or manage the cryptocurrency. This simplifies the process, especially for traditional investors unfamiliar with crypto wallets and exchanges.

Additionally, the world’s largest digital asset manager – Grayscale – operates under regulatory frameworks, providing a layer of security and transparency. That might be particularly attractive to risk-averse investors who might be hesitant to enter the volatile crypto market.