Cardano News Update: Large Holders Transfer $22.8M ADA to Vaults Amid Bearish Short-Term Sentiment

Bitget-RWA2025/11/06 17:40

By:Bitget-RWA

- Cardano (ADA) fell below $0.58 as bearish momentum and rising short positions drive a 10% weekly decline, with Santiment data showing weakened on-chain activity. - Whale activity surged, moving $22.8M ADA to private wallets, suggesting institutional accumulation amid a $3.02M net outflow from exchanges. - Technical indicators highlight a critical $0.64 support level for potential recovery, while Input Output's Ouroboros Phalanx upgrade aims to boost scalability and transaction speeds. - Derivatives trade

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Cardano (ADA) has experienced a significant drop over the past few weeks, falling below $0.58 on Monday as bearish sentiment intensified and short positions increased,

as reported by FXStreet

. This decline follows a 10% decrease from the previous week, fueled by declining on-chain engagement and a derivatives market that leans negative. According to FXStreet, Santiment's Daily Active Addresses—a key measure of network activity—dropped to 24,280 from 32,115 since October 11, indicating waning interest in Cardano's blockchain. At the same time, Coinglass data shows the long-to-short ratio at 0.75, the lowest in a month, suggesting more traders are betting against

ADA

Technical analysis further supports the bearish scenario. Last week, Cardano failed to break through the crucial $0.70 resistance, and now risks sliding to $0.49 as indicators like the RSI (32) and MACD (with converging green bars) point to weakening bullish momentum. A move above the 20-day EMA at $0.64 could, however, spark a rally back toward $0.70,

according to Cointelegraph’s forecasts

Cardano News Update: Large Holders Transfer $22.8M ADA to Vaults Amid Bearish Short-Term Sentiment image 0

Still, some experts believe that reclaiming the 20-day EMA at $0.64 could reignite upward momentum toward $0.70.

Despite the recent slump, blockchain data suggests possible accumulation is underway. Large holders have moved $22.8 million worth of ADA—about 37.5 million tokens—from exchanges such as Coinbase to private wallets,

based on Coinotag’s analysis

. This withdrawal, which is part of a larger -$3.02 million netflow, implies that institutional or major investors may be preparing for long-term appreciation. Historically, such moves have preceded price rebounds, as lower exchange liquidity can increase volatility in favor of buyers, Coinotag noted.

Futures data also points to growing optimism. Over the past 90 days, taker buy dominance shows that buyers have been active, with derivatives traders taking advantage of price drops and building momentum toward resistance. This trend coincides with Input Output’s recent unveiling of the Ouroboros Phalanx upgrade, which aims to improve Cardano’s security and boost transaction speeds by up to 30%, according to a TradingView report

. The upgrade is expected to enhance scalability and smart contract performance, potentially sparking renewed interest in the Cardano ecosystem.

Although the short-term outlook remains negative, some analysts believe ADA could stage a comeback. If buyers manage to hold the $0.50 support, a breakdown could see a move toward $0.40, while a sustained push above $0.70 might indicate a broader rally among altcoins, as highlighted by Cointelegraph. The balance between whale accumulation, technical signals, and upcoming network improvements will play a key role in shaping Cardano’s future direction.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.

Bitget•2026/10/19 06:51