- Cardano whale wallets reversed course after short-term accumulation, dumping 270 million ADA worth over $170 million.
- A proposal to convert $100 million of Cardano’s treasury into Bitcoin and stablecoins sparked market-wide uncertainty.
- Technical patterns signal the risk of ADA falling to $0.50, amplifying fears of a broader altcoin correction.
- Charles Hoskinson assured that any treasury sales would be done OTC to limit price disruption and support DeFi growth.
Cardano finds itself at the center of fresh volatility this week as large-scale ADA holders dramatically shift their stance, triggering renewed concerns over the cryptocurrency’s near-term stability. According to a recent tweet by Ali Martinez, institutional-sized wallets, those holding between 100 million and 1 billion ADA, initially resumed accumulation earlier this week, adding a staggering 120 million ADA in just 48 hours. But the optimism was short-lived.
Renowned crypto analyst Ali Martinez revealed that these same whale-tier investors reversed course almost immediately. In less than a week, they unloaded over 270 million ADA, equating to more than $170 million in fiat value. This significant sell-off has placed downward pressure on Cardano’s price, which dropped from a local high of $0.71 to a low of $0.62 before staging a slight rebound to $0.636 at the time of reporting.
Whale liquidations of this scale often set off a chain reaction, prompting smaller investors to follow suit in anticipation of further declines. The result? Amplified volatility and negative sentiment across Cardano’s ecosystem.
Cardano Risks $0.50 Drop as Treasury Eyes Bitcoin
Analysts are also keeping a close eye on technical indicators. A looming head-and-shoulders pattern, currently in the process of breaking down, could push ADA toward the $0.50 mark if not invalidated soon. Some fear this could spark a broader sell-off across altcoins with similar setups.
While part of the market drawdown may be attributed to wider geopolitical unrest, particularly the growing tension between Iran, Israel, and the United States, internal factors within the Cardano ecosystem have also added to the uncertainty.
Earlier this week, Charles Hoskinson, Cardano’s founder, and CEO of IOG (Input Output Global), proposed a controversial idea: reallocating $100 million worth of ADA from the treasury into Bitcoin and stablecoins. The goal, he explained, was to strengthen Cardano’s DeFi infrastructure and ensure long-term sustainability.
Cardano Treasury Plan Sparks Market Fear
The proposal sparked a flurry of responses across the crypto community. Supporters saw it as a strategic step toward bolstering network utility and interoperability, while critics raised alarms about the potential impact on ADA’s market price, arguing that such a divestment could exacerbate already fragile sentiment.
Hoskinson, however, swiftly addressed the concerns. In a public statement, he clarified that any treasury sale would be conducted off-market through OTC (over-the-counter) deals, specifically targeting institutional buyers. This, he claimed, would mitigate market disruption.
“The belief that Cardano DeFi is improving will offset the sale volume of ADA from a modest divestment (and yes, this is modest),” Hoskinson emphasized, attempting to restore confidence.
Still, with whales now pulling back, technicals flashing warning signs, and the community divided over treasury strategy, Cardano enters a critical moment. Whether ADA finds stability or faces deeper correction will likely depend on how effectively the project navigates both external headwinds and its growing pains.
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