TLDR
- Cardano sentiment has dropped to its lowest level in five months according to on-chain analytics
- ADA has bounced 5% from late August lows and currently trades at $0.8177
- Whales have dumped over 30 million ADA tokens after the price hit $1 resistance
- Technical analysis shows ADA is testing key support at the 0.382 Fibonacci level near $0.821
- The token remains within an ascending channel pattern that has held since mid-June
Cardano has experienced a sharp shift in market sentiment over the past month. On-chain analytics firm Santiment reports that retail sentiment for ADA has crashed to its most negative reading in five months.
The sentiment data comes as ADA has actually rebounded about 5% from its late August lows. This creates what analysts call a contrarian signal in the market.
🧐 Cardano has quietly seen its normally optimistic crowd start to turn bearish. After the lowest sentiment recorded in 5 months, $ADA‘s price is +5%. Patient holders and dip buyers during this three week downswing should root for this trend of bearish retailers to continue.… pic.twitter.com/VgGwRW243P
— Santiment (@santimentfeed) September 4, 2025
Santiment’s analysis shows the bullish-to-bearish ratio has fallen to around 1.5:1. This represents the most pessimistic retail sentiment since April 2025.
The firm’s data reveals three distinct phases over the past month. In early August, a “greed” spike pushed the bullish-to-bearish ratio to roughly 12.8:1 before a pullback occurred.
Mid-August saw a “fear” pocket near 2.0:1 that preceded a rally. The current bearish reading coincides with ADA’s recent 5% bounce.
Santiment frames this shift in contrarian terms. The firm suggests that when small traders sell due to impatience and frustration, key stakeholders often accumulate and drive prices higher.
Whale Activity Creates Market Pressure
Large investors have been active in ADA markets recently. Trader Ali Martinez reported that whales have dumped over 30 million ADA tokens after Cardano reached the $1 price level.
30 million Cardano $ADA sold by whales in the past week! pic.twitter.com/HkhkZyG019
— Ali (@ali_charts) September 1, 2025
This selling activity raises questions about near-term price direction. Whale movements often influence broader market sentiment due to their outsized positions.
Despite the whale selling, ADA has still managed a 9% gain over the past 30 days. This suggests that new buyers may be taking advantage of recent price weakness.
The token currently trades at $0.8177 according to market data. This level represents a key technical area that analysts are watching closely.
Technical Analysis Points to Decision Zone
Independent analyst Quantum Ascend identifies ADA as trading within an ascending channel pattern. This structure has contained price action since mid-June 2025.
The analyst’s chart shows ADA currently sitting at the 0.382 Fibonacci retracement level near $0.821. This level is acting as immediate support and represents what the analyst calls a “decision point.”
Below current levels, the analysis highlights the 0.309 retracement around $0.762 as the next support area. Deeper pullback levels include the 0.236 retracement near $0.702.
The three-week decline that began around August 14 has formed its own corrective channel within the broader uptrend. This shorter-term pattern has guided price back to the lower end of the main ascending channel.
Overhead resistance levels are mapped at the 0.5 retracement near $0.879. Higher targets include the 0.618 level near $1.043 and the 0.786 retracement around $1.151.
The 200-day exponential moving average currently provides support and aligns with the lower boundary of the ascending channel. This technical confluence strengthens the support zone.
Price action over the coming sessions will determine whether ADA can hold above the current support cluster. A break below could target the deeper Fibonacci levels mentioned in the analysis.
Current market structure shows ADA trading at $0.8177 as it tests the key 0.382 Fibonacci support level.
