Cardano Whales Continue to Dump 390 Million ADA Despite Major Treasury Milestone

Summary generated by AI

Cardano large investors sold 390 million ADA, despite a successful community-led treasury allocation governance vote, which still led to a price drop. Retail investors remained stable, but due to large investors' dumping and technical indicators signaling low prices, bearish momentum still exists. Cardano whales sold 390 million ADA, putting pressure on the token's price. Despite receiving a $71 million treasury bonus, ADA continued to fall in the third week. Whale dumping exceeded accumulation, confirming bearish momentum on technical indicators. Cardano's ADA made history. For the first time, a major on-chain governance vote passed with a 74% approval rate. The $71 million treasury allocation marks a significant shift towards community-led control. Intersect, a member-based oversight group, will be responsible for distributing the funds. This funding will support Hydra scalability, Project Acropolis, and developer tools. Despite this huge milestone, ADA whales began to sell off tokens. Investors holding large amounts of tokens seem less excited about the rest of the community. The governance breakthrough could not stop the sell-off. Cardano's voting marked a critical turning point. No other top 10 tokens have done this. Funds will be gradually released over 12 months, with clear oversight. The plans include support for Bitcoin and Ethereum compatibility. Privacy upgrades and smart contracts have also been approved. Nevertheless, ADA still faces challenges. On Wednesday, the token fell nearly 2%. This marks three consecutive weeks of losses. Charts show ADA trapped in a downward channel. The 50 EMA is approaching the 200 EMA. Resistance remains high, preventing any short-term breakthroughs. RSI is at 40, showing weak buying demand. MACD crossover turned bearish, indicating future price declines. ADA needs to break through $0.7417 to turn bullish again. Until then, pressure continues to mount. On-chain data supports the bearish sentiment. Trading volume plummeted from $1.69 billion to $744 million. The profit surge on July 25 triggered this retracement. On that day alone, 143.63 million ADA were sold for profit. Since then, momentum has weakened. Whales stir the waters while retail investors remain stable. Retail users have not exited. Daily active addresses rebounded from a low of below 29,000 to 31,000. Small holders still believe in the mission. The situation for large wallet investors is different. Whales holding 1–100 million ADA sold 390 million tokens. Their total holdings decreased to 18.51 billion ADA. This sell-off may have led to the price decline. On the other hand, even larger whales quietly increased by 450 million ADA. Their holdings grew to 5.36 billion ADA. Nevertheless, net pressure remains negative. Medium-sized whales control more tokens and are currently leaning bearish. Meanwhile, the Cardano ecosystem continues to grow. The Midnight sidechain focusing on privacy has officially launched. The A NIGHT token airdrop reached 37 million users. This is no small feat. Financial resources will support more scalability, security, and interoperability tools. Smart contracts and a new committee will monitor progress. However, the market is still listening to the movements of the whales. As long as they continue to sell, ADA will face strong resistance. Only a break above the 200 EMA can reverse this trend. Currently, holders are watching closely—hoping this is not the calm before a deeper storm.