Cardano’s ADA saw a daily rebound but faces pressure as large investors sold a significant amount of tokens. The cryptocurrency’s 3% gain on March 4 was overshadowed by a major whale sell-off of 230 million ADA, worth approximately $63 million. Analysts note conflicting signals, with bearish whale behavior contrasting with technically oversold conditions and sustained withdrawals from exchanges.
Cardano’s ADA token gained about 3% on March 4, climbing above $0.27 amidst a broader market resurgence. This daily uptick occurred despite the asset remaining down roughly 2% over the past week.
Prominent analyst Ali Martinez revealed that whales redistributed 230 million ADA, a stash valued around $63 million. This sell-off reduced their collective holdings to less than 37% of ADA’s circulating supply, which could increase selling pressure on the open market.
This recent distribution contrasts sharply with whale accumulation from August 2025 through February. During that period, large investors purchased nearly 820 million ADA tokens according to previous reports.
Yet, Martinez outlined critical support levels at $0.245, $0.112, and $0.051 should the price trend downward again. Meanwhile, popular trader Jake Gagain described ADA as one of his worst investments, sparking a heated debate among users on social media.
Some technical indicators suggest potential for a reversal. ADA’s exchange netflows have been predominantly negative for months, indicating coins are moving into self-custody and reducing immediate sell-side pressure.
Furthermore, ADA’s weekly Relative Strength Index has fallen below 30, a level historically considered oversold. X user Sssebi noted this, stating that “historically ADA has never been this oversold, which makes it one of the most undervalued projects.”
