Cardano (ADA) Faces Short-Term Weakness Amid Whale Outflows and Bearish Crossovers

Cardano’s (ADA) recent price movement signals short-term weakness despite maintaining a solid longer-term uptrend. In the past 24 hours, ADA’s price has declined by over 5%, breaking down from a bearish chart pattern. Even so, the cryptocurrency remains up 31% over the last three months, reflecting resilience in its broader market outlook.

However, on-chain and technical indicators now hint at a potential short-term correction. Data from Santiment reveals that whale wallets holding between 10 million and 100 million ADA have trimmed their positions slightly, dropping from 13.09 billion to 13.07 billion tokens since October 6 — a net decrease of around 20 million ADA, worth roughly $16 million. Although the change appears modest, such outflows often indicate growing caution among major investors, especially when paired with weakening technical momentum.

On the 4-hour chart, ADA’s 20-period Exponential Moving Average (EMA) has crossed below both the 50-period and 200-period EMAs, forming what analysts call a “double death crossover.” This pattern typically signals that sellers are regaining control as short-term buying strength fades. When combined with whale outflows, the signal strengthens the case for a near-term pullback.

From a technical perspective, ADA is currently moving within a descending channel, suggesting sustained selling pressure. The measured target from this pattern points toward $0.76 — a key support level — implying another 6% potential downside from current prices. Nonetheless, ADA could find temporary support around $0.78 if large holders resume accumulation.

If ADA manages a decisive close above $0.85 and pushes past $0.88, the bearish outlook would likely be invalidated, signaling a renewed bullish phase. Until then, traders may interpret this dip as a short-term cooldown rather than a complete trend reversal.