Cardano’s ADA token is confronting significant distribution pressure from large holders, raising concerns about its ability to reclaim the psychologically important $1 price level. Analysis indicates weak support and diminishing speculative interest are key hurdles.
A critical concentration of supply held by large wallets, often termed ‘whales’, poses a substantial risk. Wallets holding between 10 million and 100 million ADA collectively control 35.62% of the total supply, making their trading activity a major determinant of price stability.
Market data suggests these whales are currently offloading ADA below their average cost basis. This trend heightens concerns about potential further downside pressure and the possibility of capitulation events if selling intensifies.
Reclaiming the $1 price point represents a significant technical and psychological barrier for ADA. However, achieving this appears challenging due to persistently weak buying interest and ongoing supply-side pressure from whale distributions.
Technical indicators, such as the Relative Strength Index (RSI), show ADA approaching oversold territory. Despite this, the lack of significant trading volume and positive momentum signals limited potential for a near-term price recovery.
The crucial $0.60 support level is now under threat. The combination of whale distribution and weak market demand significantly increases the risk of a deeper price correction if no substantial positive catalysts emerge to shift sentiment.