tl;dr
Cardano's ADA has passed a major governance vote with 74% approval for a $71 million treasury fund to support ecosystem expansion, including Hydra scaling and developer tools. Despite this, ADA faces selling pressure from mid-sized whales who have sold 390 million tokens, while the largest whales ha...
Cardano’s ADA has reached a historic milestone, passing a major on-chain governance vote with 74% support for a $71 million treasury allocation. This marks a significant shift toward community-led control, with the member-based oversight group Intersect tasked with managing fund distribution. The funds aim to support Hydra scaling, Project Acropolis, and new developer tools, signaling an ambitious expansion of Cardano’s ecosystem.
Despite this breakthrough, ADA has faced notable selling pressure, particularly from whales. While retail investors remain steady, with daily active addresses rebounding, large holders with 1 to 100 million ADA tokens have dumped 390 million ADA, reducing their total holdings and exerting bearish pressure on the market. Interestingly, the largest whales have quietly accumulated an additional 450 million ADA, yet the overall net pressure remains negative due to the larger volume sold by mid-sized whales.
Technically, ADA is struggling to break free of a downward trend. The token has dropped nearly 2%, extending losses to three consecutive weeks, with charts showing ADA caught in a falling channel. Key indicators like the 50-day exponential moving average (EMA) nearing the 200 EMA and a relative strength index (RSI) at 40 suggest weak buying interest. The bearish crossover of the MACD further points to potential declines ahead. For a bullish reversal, ADA needs to clear the resistance level at $0.7417, or it faces continued downward pressure.
On-chain data reinforces the bearish narrative, highlighting a sharp decline in transaction volume from $1.69 billion to $744 million. The sell-off appears to have been triggered by a profit spike on July 25, when 143.63 million ADA were dumped. Since then, momentum has waned, reflecting caution among large investors.
Despite market turbulence, the Cardano ecosystem itself is advancing. The launch of the Midnight sidechain with a focus on privacy and the distribution of A NIGHT token airdrops to 37 million users demonstrate ongoing growth. Treasury funds will further back scaling solutions, security enhancements, and interoperability efforts. Smart contracts and the newly formed oversight committee will help track progress.
However, market sentiment remains heavily influenced by whale activity. As long as mid-sized whales continue to sell, ADA faces strong resistance that prevents any immediate rebound. A break above the 200 EMA will be critical to reverse this trend. For now, holders watch with anticipation, hoping the community milestone signifies sustained growth rather than a fleeting calm before more selling pressures emerge.