- Whales have offloaded over 330 million ADA and have yet to buy back during the dip.
- A potential collaboration between Ripple’s XRP and Cardano’s ADA could propel the latter higher.
Cardano [ADA] recently showcased a significant decline, with a daily reduction of 9.8% and a weekly drop of 19.1%. The ADA/USDT trading pair on Binance hovered around $0.7465 at press time.
The chart signaled a consistent downward movement, with red candlesticks dominating recent trading periods.
Source: Coinglass
Despite this bearish outlook, there were potential signs of stabilization. The Relative Strength Index (RSI) stood at 47.49, suggesting that ADA was not yet in the oversold territory.
This left room for further decline before a potential rebound. However, sentiment around Layer-1 altcoins like Cardano remained bullish, hinting that external catalysts could trigger recovery.
Whale activity and its impact on ADA
According to insights, whales have offloaded over 330 million ADA and have yet to buy back during the dip. This massive sell-off by large holders exerted significant downward pressure on the price.
The lack of whale interest in accumulating at lower levels suggested either a lack of confidence or a strategic approach to re-entering at more favorable conditions.
This inaction creates uncertainty in the market. Large holders typically set trends, and their reluctance to buy signals hesitation, potentially deterring retail investors from stepping in.
If whales remain on the sidelines, ADA could continue its downward trajectory.
Uncertainty within key metrics
The volatility of ADA, as indicated by the charts, showed a Volatility Index of 0.7511, pointing to moderate fluctuations.
The Average True Range (ATR) suggested that while price swings were present, they were not at extreme levels, indicating potential stabilization.
Historically, high volatility has preceded significant price movements, making ADA’s current state crucial.
A sharp recovery or further decline depends on external market catalysts.
Despite price fluctuations, Cardano’s on-chain activity showed positive trends. Over the last seven days, new addresses increased by 4.79%, while active addresses surged by 11.99%, according to IntoTheBlock data.
Source: IntoTheBlock
Increased network activity signaled growing adoption and interest in the Cardano ecosystem.
Although this may not immediately reflect in price movements, it underscored ADA’s long-term utility and potential for value appreciation.
XRP and ADA’s partnership — A potential catalyst for recovery?
Recent speculation hinted at a potential collaboration between Ripple’s XRP and Cardano’s ADA, with an official announcement expected next month.
As reported by @CardanoFeed, this partnership could provide ADA with much-needed positive momentum.
Strategic alliances in the crypto space often boost visibility, credibility, and investor confidence, potentially driving fresh capital into ADA.
Read Cardano’s [ADA] Price Prediction 2025–2026
This partnership could be a pivotal move for ADA, leveraging Ripple’s established financial network and Cardano’s DeFi innovations.
However, without official confirmation, this remains speculative. Traders should monitor upcoming announcements for confirmation and potential market reactions.
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