Following a relatively uneventful start to 2025, Cardano’s price was on an upward trend, building on the bullish momentum from last year. Recently, however, it seems the cryptocurrency has hit a bump, dipping nearly 15% over the past week.
This drop in value might be linked to the ongoing uncertainty and commotion surrounding Donald Trump’s inauguration. Alternatively, it could be a result of the maneuverings of large investors in the last week. Let’s delve into how Cardano’s major holders have been trading in these past seven days.
Whales Purged $180 Million Worth of ADA Last Week
Renowned crypto analyst Ali Martinez took to the X platform, shedding light on the volume of Cardano tokens that were offloaded by major investors in the past week. This analysis revolves around wallet activity from those holding between 100 million and 1 billion coins.
To clarify, these significant holders are often referred to as whales. The movements of such whales are closely monitored by other market players due to their potential impact on the market.
Crypto whales, due to the sheer size of their holdings, hold considerable sway over market trends and asset prices. Typically, asset prices are influenced by these large investors—prices tend to rise when whales are accumulating and decline when they are offloading their holdings.
Martinez highlighted that over the past week, Cardano whales trimmed their positions rather significantly, selling off more than 180 million ADA tokens. This activity equates to roughly $185 million at the current market valuation.
While pinpointing the exact reason behind this whale behavior is tricky, it’s common for such investors to secure profits following a price surge. For example, Cardano’s price experienced a significant increase, climbing nearly 30% from $0.90 to $1.15 between January 13 and January 17.
Moreover, when whales engage in large-scale sell-offs, it may signal a change in investor sentiment, particularly if they foresee a potential price downturn. By cashing in early, they aim to reduce potential losses.
Ultimately, when whales start reducing their holdings, it usually doesn’t bode well for an asset like Cardano. This increased supply in the market, if not met with adequate demand, can place downward pressure on ADA’s price.
A Snapshot of Cardano’s Current Price
At the moment, Cardano’s ADA token is priced at approximately $0.97, indicating a decrease of over 1% within the last 24 hours. CoinGecko’s data reveals that the altcoin has dropped about 15% throughout the previous week.
Featured image by Unsplash, chart courtesy of TradingView.
