thecryptobasic.com
11 h
Cardano ($ADA) price faces downside risk as large holders reduce their positions and network activity declines, according to analyst Ali Martinez.
Citing Santiment data on X, Martinez said Cardano is heading for a “big correction” amid whale selling and weakening network participation.
According to the analyst, large holders have offloaded more than 110 million $ADA over the past five days. The selling adds pressure as $ADA approaches a support level that will determine its next move.
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CoinMarketCap data shows $ADA trading at $0.2386. It is down approximately 6% over the past 24 hours and 12% over the past seven days. Despite the recent decline, the token remains up 15% over the past 30 days, although it is still down 28.32% year to date.
Meanwhile, whale selling is not the only concern highlighted in Martinez’s analysis. Santiment data also shows a decline in daily active addresses, suggesting that fewer addresses have interacted with the Cardano network.
Daily active addresses fell 41.36%, from 27,248 to 15,977. The decline coincides with the distribution of more than 110 million $ADA by large holders.
The combination raises concerns about demand for $ADA at current prices. While whale selling can increase the amount of tokens available on the market, declining address activity points to reduced network participation.
However, Cardano set a new transaction record this week after processing 1,780,896 transactions during Epoch 660, which ran from October 6 to October 11, 2026, according to blockchain explorer Cexplorer.io.
Epoch 660 processed the transactions across 21,243 blocks, generating approximately ₳337,720 in fees, or an average of ₳0.19 per transaction.
The milestone follows Cardano surpassing 125 million cumulative mainnet transactions on October 9. Yet, transaction counts do not necessarily represent unique users or have an impact on $ADA price action.
Martinez identified $0.24 as a critical level for Cardano, with the price approaching the support area of a rising channel. $ADA’s current price of $0.2386 sits slightly below that level. This makes the channel’s lower boundary near $0.21 the next area to watch if the breakdown continues.
Essentially, a move below $0.24 could expose $ADA to further losses toward $0.21, according to the analyst’s chart analysis. That would represent a decline of approximately 12% from $0.2386.
Conversely, a recovery above $0.24 could help the token regain the key level identified in the analysis. However, the reported whale selling and declining network activity remain risks for any recovery attempt.
So, the $0.24 area is the key level to monitor as traders assess whether Cardano can stabilize or extend its recent losses.
