Smart Money Pulls Back From Cardano as ADA Weakens, Leaving Bulls on Edge

• Smart money outflows rise as long-term ADA holders distribute older coins.
• Cardano risks a 35% drop toward $0.24 if the channel breakdown continues.
• A major catalyst could flip the trend, opening a path toward $1.80 instead.

Cardano has been slipping into a rough patch again, and this time it looks like the so-called “smart money” is quietly stepping out of the room. Over the last week, ADA has shown noticeable weakness, and long-term holders — the ones usually known for patience — have started moving their coins. Data from the Spent Coins Age Band shows a sharp 23% jump in older ADA being spent, rising to roughly 114.66 million coins. When the older wallets start distributing, it usually means confidence is fading behind the scenes.

ADA did catch a tiny bounce earlier in the week, but it fizzled out almost instantly. No real follow-through, no sign of returning strength, just a stagnant drift that leaves the door open for new lows. Big wallets appear to be positioning cautiously, almost like they’re hedging against whatever comes next. Still, analysts like Ali Martinez point to the TD Sequential indicator, hinting that the current downtrend may be losing a bit of steam — a faint but notable signal that a temporary relief move could form if conditions line up.

Cardano Price Prediction: More Downside or a Surprise Turnaround?

The picture isn’t pretty. ADA is breaking down from the descending channel that has kept it contained for nearly a year. Smart money exiting while structure breaks to the downside is never a great mix. Momentum indicators also lean heavily bearish. The MACD golden cross, which looked promising not long ago, now seems like it might flip into a death cross as the lines drift back under the signal line.

The RSI did dip into oversold territory, falling under 30 — a level that usually marks local bottoms for ADA. But this time, momentum isn’t doing much to support a bounce. There’s no surge of buyers stepping in, no shift in strength, nothing to overshadow the broader downtrend. If the channel breakdown holds, the charts are pointing toward another potential 35% slide down to the $0.24 area, a major support that’s held up through this cycle.

Could a Catalyst Save ADA From New Lows?

Even with the bearish setup, there’s still room for a surprise reversal — but only if a catalyst hits. Something like a Spot ETF approval for ADA or a macro shift, such as the U.S. easing interest rates in December, could spark a false breakdown. Those kinds of events often trigger sharp recoveries and force shorts to unwind quickly. In that bullish scenario, ADA could break out of the channel instead of collapsing through it.

A breakout above resistance eyes a massive move — nearly 380% — toward $1.80, with interim levels around $0.50 and $1.34 acting as checkpoints along the way. It’s a dramatic difference from the bearish target, which shows just how polarizing ADA’s current setup is.

Right now, Cardano sits in a tense middle ground where fear, structure, and investor behavior all conflict. Here is where the next move could become decisive, for better or worse.

The post Smart Money Pulls Back From Cardano as ADA Weakens, Leaving Bulls on Edge first appeared on BlockNews.