Cardano Faces Whale Sell-Off as Midnight Network Activity Skyrockets

Altcoins

Cardano Faces Whale Sell-Off as Midnight Network Activity Skyrockets

Cardano (ADA) continues to face heavy selling pressure despite a modest bounce this week, with the token recovering just above $0.53 after a sharp monthly drop of more than 30%.

Key Takeaways

  • Cardano (ADA) trades near $0.53 after a 30% monthly decline.
  • Whales sold over 4 million ADA in the past week, signaling weak confidence.
  • Technical indicators show ongoing bearish momentum below $0.55.
  • Midnight, Cardano’s privacy sidechain, surpassed one million mining addresses.
  • AI forecasts see ADA averaging $3 by 2026 and $9+ by 2030. 

The brief rebound has done little to shift sentiment, as large holders continue to offload their positions and technical indicators point to further downside risks.

According to recent on-chain data, wallets holding between 100,000 and 1 million ADA have liquidated over 4 million tokens in the past week alone. This sustained whale selling coincides with ADA’s prolonged decline from September highs, suggesting that big investors are contributing to the persistent downward momentum across the market.

Technicals Point to Ongoing Weakness

Cardano’s daily chart reveals that the token remains trapped in a descending channel, unable to break the bearish pattern that has defined its recent trading range. ADA currently hovers near $0.53, with the lower Bollinger Band offering support at $0.51 and the upper boundary around $0.71 acting as key resistance.

Indicators also paint a cautious picture. The RSI hovers around 41, showing limited recovery potential, while the MACD stays near a bearish crossover. A move below $0.51 could extend the correction toward $0.43 or even $0.36, whereas a break above $0.60 might open the door to a short-term relief rally.

Overall, the 1-day technical summary flashes a “Sell” signal, with moving averages leaning toward a “Strong Sell.”

Whales Trim Positions as Retail Sentiment Weakens

Analyst Ali Martinez highlighted that Cardano whales have steadily reduced exposure, confirming that over 4 million ADA were sold this week. The trend underscores a growing lack of confidence among high-net-worth investors, many of whom appear to be rotating into other assets amid weakening altcoin momentum.

Despite that, Cardano’s underlying fundamentals continue to strengthen. The ecosystem remains one of the most active in the industry, with major updates rolling out to improve scalability and security.

Midnight Network Drives Ecosystem Growth

The standout story within the Cardano ecosystem this month is Midnight, the blockchain’s privacy-focused sidechain designed for secure and compliant data sharing. Midnight has already surpassed one million mining addresses and recorded more than 200,000 direct token claims, signaling strong adoption momentum.

CTO Sebastien Guillemot noted that large decentralized applications like Minswap are now distributing NIGHT tokens, while major exchanges such as Kraken and Gate are preparing to list them. Founder Charles Hoskinson has described Midnight as the “pillar of scalability” within Cardano’s ecosystem, emphasizing its six-year development and more than 80 developer partnerships secured so far.

AI Price Models Suggest Gradual Recovery Ahead

While near-term charts remain bearish, AI-based forecasts show potential for steady growth over the coming years. Aggregated projections from Gemini, BlackBox, and ChatGPT place ADA’s average price near $0.95–$1.20 by October 2025, climbing toward $3.00 by 2026 and above $9.00 by 2030 under bullish macro and ETF-backed conditions.

However, without ETF approval or a strong retail rebound, models suggest ADA could remain below $1 in the short term. Long-term optimism still hinges on ecosystem expansion and investor confidence returning to the network.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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Author

Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

Source: https://coindoo.com/cardano-faces-whale-sell-off-as-midnight-network-activity-skyrockets/