Crypto: Major Cardano Holders Reduce Their Exposure After ADA Rebound

While the price of Cardano (ADA) attempted a breakout above 0.20 dollars, some of those who really move the crypto market quietly put away their tokens. The large Cardano wallets are reducing their positions, and the technical indicators are starting to tell a story that is much less optimistic than the recent rally suggested.

In Brief

• The number of wallets holding 1M-10M ADA went from 2,370 to 2,340 in 9 days, driving the price from 0.202 dollars to 0.188 dollars.
• Death cross on the MVRV ratio and sell signal from the TD Sequential technically validate the early exit of large holders.
• The Cardano Foundation just voted in favor of the PRIME program, potentially injecting four times more ADA than the whales have withdrawn. Timing that raises as many questions as it reassures.

Cardano (ADA): A Quiet Exit That Worries?

Ali Martinez was the first crypto analyst to document the movement. According to the data he published on August 11, the number of wallets holding between 1 million and 10 million ADA dropped from 2,370 to 2,340 in just nine days. On paper, the decrease seems minor. In reality, it corresponds to a coordinated profit-taking by actors who, historically, anticipate market reversals quite well. And the market mechanism followed suit. ADA, which hit a local high of 0.202 dollars, slid to 0.188 dollars shortly after. Two distinct technical indicators support the same conclusion:

• A death cross on the MVRV ratio: the 7-day moving average of the MVRV crossed the ratio itself downwards, a classic signal of a slowing bullish momentum;
• A sell signal confirmed by the TD Sequential: on the daily chart, the bearish countdown triggered, which validates retrospectively the early exit of the whales.

In other words, the large crypto wallets did not leave on a whim. They left before the charts confirmed what they apparently had already anticipated.

Crypto: How Far Will Cardano’s Fall Go?

Two scenarios are now emerging for what comes next. On one hand, the intermediate pullback. If selling pressure remains moderate, the support at 0.170 dollars should absorb the shock. On the other hand, a deep correction. If this level breaks and retail crypto investors follow the whales’ move out of panic, cardano could retest the bottom of the range at 0.144 dollars, a complete trend reversal. For now, 0.170 dollars acts as the dividing line between a simple market breath and a real alarm signal.

The Timing That Raises Questions: 120 Million ADA Released at the Same Time

At the very moment when crypto whales lighten their positions, the Cardano Foundation voted YES on a governance action authorizing the withdrawal of up to 120 million ADA in favor of the “Cardano PRIME” program. Led by AlphaGrowth, the plan is explicitly designed to address the DeFi liquidity deficit in the ecosystem. On paper, the program’s structure is quite serious:

• About 90 million ADA remain conditional on a favorable decision by the Operating Group in month 4 (Phase 3), which limits immediate exposure to about 30 million ADA;
• AlphaGrowth produces the analysis and payment recommendations, the Operating Group has veto rights, and Intersect custody the crypto funds via audited treasury contracts from Sundae Labs;
• Performance fees are due only on verified TVL growth and explicitly exclude the effect of Cardano price;
• Payments are deliberately back-loaded (30% / 30% / 40% at 30 days, 3 months, and 6 months), and the TVL observation window was extended from 12 to 24 months to ensure liquidity is sustainable over time.

However, it is hard to blame the Cardano Foundation for having built safeguards. But injecting the promise of four times more ADA than what crypto whales just withdrew is the kind of coincidence that will not exactly reassure skeptics. The question remains whether PRIME will rebuild true DeFi liquidity depth or if it is mainly a well-documented bandage on a trust hemorrhage.

The real question is no longer why Cardano (ADA) whales left; on-chain metrics already answer that question clearly. It is whether retail buyers will hold the line at 0.170 dollars or if the crypto market will follow the millionaires’ exit move. The answer in the coming days.