Cardano’s largest investors, commonly known as ADA whales, have been reducing their trading activity, indicating a change in sentiment towards the altcoin.
In the past week, on-chain data from IntoTheBlock has revealed a significant 90% decrease in the netflow of ADA from these major holders. This decline suggests that these large investors are either selling off their holdings or refraining from adding more to their positions.
The decrease in whale activity could be a warning sign for ADA, as it may result in lower liquidity and increased price volatility. With these key players pulling back, there is less buying pressure, which could contribute to a further decline in the coin’s value. This change in behavior aligns with a growing bearish outlook on ADA.
Adding to the negative sentiment is the growing demand for short positions in ADA’s futures market, as indicated by its negative funding rate of -0.005%. A negative funding rate signifies that more traders are betting against the asset, further indicating a lack of confidence in ADA’s short-term performance. Unless new buying momentum emerges, ADA faces the risk of prolonged downward pressure as market sentiment continues to deteriorate and whale activity remains subdued.