Cardano (ADA) is facing renewed downward pressure after large holders sold more than 110 million ADA over five days, according to analyst Ali Charts in an X post. The whale distribution coincided with a 41.36% decline in daily active addresses, which fell from 27,248 to 15,977. Whale holdings are among the most closely watched metrics in crypto markets, since shifts by the largest wallets are often read as a gauge of large-holder conviction.

With ADA changing hands near $0.239, the analyst identified $0.24 as a critical support level and flagged the lower boundary of a rising channel near $0.21 as a potential downside target if that support fails. The token is currently below its 50-day moving average near $0.252 but remains slightly above its 200-day moving average around $0.237.

Whale Selling and Declining Network Activity

Ali Charts reported that Cardano whales trimmed their holdings by more than 110 million ADA within five days, with the selling accelerating as the token approached support near $0.24. Daily active addresses dropped in parallel, falling from 27,248 to 15,977 — a 41.36% decline — according to Santiment data. In the analyst's view, the combination of shrinking whale balances and falling network activity raises concerns for the token's near-term outlook. Daily active addresses are a standard measure of on-chain usage, and analysts commonly compare wallet behavior against network activity to test whether price trends are backed by real participationn
Ali Charts warned that ADA could face a deeper correction if it loses the $0.24 level, and a break below it would shift attention to the rising channel's lower boundary near $0.21.

ADA Retreats From October Highs

The pullback follows a recovery that began at June lows near $0.14. ADA stabilized in the $0.15–$0.17 range before advancing through August and September, clearing $0.196 and then $0.215 on its way to approximately $0.27–$0.28 in October. The latest decline has since pulled the price back to around $0.239.

Immediate support is positioned between $0.237 and $0.233. If selling intensifies, subsequent downside levels sit at $0.215 and $0.196 — the same zones the token crossed on the way up. Resistance spans $0.252 to $0.271, and a recovery above $0.252 could open another attempt toward the upper end of that range.

Moving Averages Frame Key Levels

ADA trades below its 50-day moving average at approximately $0.252, which reflects weakening short-term momentum. The price still holds slightly above its 200-day moving average near $0.237, a level that serves as the longer-term reference on the chart. The 50-day and 200-day moving averages are among the most widely followed trend indicators in technical analysis, with their positioning commonly used to distinguish shorter-term swings from the broader trend.

Trading volume expanded during both major rallies and sharp declines, with the latest reading at approximately 557.56 million ADA. A decisive break below $0.233 could expose $0.215, while reclaiming $0.252 could strengthen the recovery toward $0.271. Until the $0.24 support and the 200-day average near $0.237 are decisively resolved, those levels stand as the near-term markers for gauging whether the pullback extends or the recovery attempt resumes.