Cardano ended September up around 23%, but some big crypto investors are starting to lighten their positions. Since September 20, Whales have reportedly sold nearly 90 million ADA, or approximately $22.5 million. At the same time, open interest on futures contracts fell by 9%. After the rally, the market is therefore much more cautious.
In brief
- Whales have reportedly sold around 90 million ADA since September 20.
- The open interest of Cardano futures falls from 1.99 to 1.81 billion dollars.
- ADA was up about 23% for the month of September as a whole.
Crypto Whales Start Selling Their ADA
The movement concerns approximately 90 million ADAs sold since September 20. At the price levels recorded during these transactions, this represents approximately $22.5 million. Cardano had already experienced a similar phenomenon this summer. In August, Tremplin.io observed a reduction in exposure of large holders after a previous rebound in ADA.
This time, the sales come after a particularly strong month. ADA gained around 23% in September before losing part of this progress during the last days of the month.
Analyst Ali Martinez considers these sales as one of the elements to watch in the short term. A TD Sequential sell signal also appeared on the daily chart on September 26. ADA then fell by around 10%.
The indicator obviously does not automatically announce a further decline. Above all, it shows that the September rally is now experiencing more profit taking. For whales, the timing is clear: they sell after the rise.
Interest in Cardano futures falls 9%
The derivatives market tells a fairly similar story. The open interest of ADA futures increased from approximately $1.99 billion to $1.81 billion in one week. The drop reached 9%.
Open interest corresponds to the value of future contracts still open. When it decreases, some traders close their positions rather than opening new ones.
Here, nearly $180 million in exhibits have disappeared. This movement contrasts with that observed a few months earlier. As of February, large wallets had accumulated 819 million ADA over six months despite the weakness in the crypto market.
September has since offered a significant rebound. The drop in open interest does not erase this performance. It simply shows that traders using leverage become less aggressive after several weeks of increases.
There is also an area located around $0.24 in the technical analysis cited. A breakout of this level could open the way towards $0.21, while a recovery would leave us looking towards $0.28 again. These are technical levels, not guaranteed goals.
Cardano nevertheless comes out of a solid crypto month
Whale sales come in a very different context from the start of the year. ADA is coming out of September up about 23%. At the same time, the Cardano network continues to evolve its infrastructure and governance. This summer, Cardano notably completed its first fully governed on-chain hard fork, an important step for the operation of the protocol.
However, the market mainly looks at short-term flows. 90 million ADA have left tracked wallets since September 20. Open interest lost 9%. A technical sell signal appeared on September 26.
Three data that arrive just after a 23% rally. This is not enough to announce a lasting turnaround for Cardano. Whales may simply take profits after the rise, while reducing leverage may also clean up the market. For the moment, the observation remains simpler. September was very favorable to ADA. The last few days have been much less so.
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