Cardano (ADA) Price Faces 7% Weekly Decline as Large Holders Accumulate 160M Tokens

Key Highlights

• Cardano’s price declined more than 7% over the past week, hovering around $0.210 by Friday’s session
• Large wallet addresses purchased 160 million ADA tokens throughout the recent price decline starting Sunday
• Trader sentiment remains bearish with a long-to-short ratio of 0.74
• The Leios testnet demonstrated throughput capacity six times greater than the current mainnet during its 41-day trial
• Conflicting on-chain signals and derivatives metrics create uncertainty about ADA’s immediate price trajectory

The Cardano (ADA) token is currently changing hands near $0.210 on Friday following a weekly decline exceeding 7%. This downturn has brought ADA beneath the $0.220 threshold, capturing significant interest from market participants and blockchain analytics experts.

Cardano (ADA) Price

While the price action remains weak, large wallet holders have actively acquired tokens during this downturn. According to Santiment’s analytics, addresses containing between 10 million and 100 million ADA have added 160 million tokens to their holdings since the beginning of the week. This activity demonstrates persistent confidence from major stakeholders, although it hasn’t yet provided enough support to halt the downward momentum.

Source: Santiment

The derivatives landscape presents contrasting signals. CoinGlass reports ADA’s long-to-short ratio currently stands at 0.74, marking one of its lowest readings in more than 30 days. When this metric falls below the one-to-one mark, it indicates a greater number of market participants are positioning for additional price weakness.

Conversely, Thursday saw the funding rate flip positive, registering 0.0013% by Friday’s close. This positive reading means long position holders are compensating short holders, suggesting a portion of the market maintains bullish expectations.

CryptoQuant’s analytics further complicate the outlook. While futures markets display substantial whale-sized orders, sell-side pressure continues to prevail. Additional indicators remain in neutral territory.

Critical Price Zones Under Observation

ADA has successfully recaptured its 50-day and 100-day exponential moving averages, positioned at $0.190 and $0.197 respectively. This development provides a moderately constructive short-term framework, though the token faces formidable resistance levels above current prices.

The Relative Strength Index is declining toward the upper-50s range while the MACD histogram shows signs of compression. These technical indicators suggest waning bullish momentum. Immediate resistance barriers are located at $0.213, $0.231, and $0.236. The 200-day EMA at $0.246 marks the primary overhead resistance area.

Should prices decline, initial support emerges around $0.195, followed by $0.173. A decisive breach below this support cluster might expose the $0.150 level to testing.

Market analyst Sssebi shared insights on X, noting that a weekly candle closing above a crucial resistance trendline would indicate the beginning of a substantial upward movement. The analyst emphasized the significance of this weekly timeframe close as the catalyst for ADA’s next major rally.

Leios Testnet Demonstrates Impressive Performance

Beyond market price dynamics, Cardano’s technical development team announced impressive outcomes from the inaugural public Leios testnet deployment. The experimental network achieved throughput levels six times greater than the existing mainnet throughout the 41-day evaluation period. During peak stability, Leios managed 54% of total network traffic, executing 18 times the transaction volume of actual mainnet activity and processing 3.3 times the data volume.

All challenges identified during the testing period originated from implementation code rather than fundamental protocol design flaws. The development team addressed these issues through consistent weekly public software releases.

The Leios architecture functions as an additional layer above Cardano’s established Ouroboros Praos consensus mechanism. It introduces endorser blocks positioned between Praos blocks to enable parallel transaction processing at greater scale. The subsequent testing iteration, designated Water, has already commenced operations and incorporates incentive mechanisms for stake pool operators.

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