Cardano’s Bullish Divergence Failed After $540M Whale Sell-Off

The Cardano price flashed a textbook bullish divergence on the daily chart, rallied nearly 24% to touch $0.31, then collapsed. The Relative Strength Index had formed higher lows while price made lower lows between December 31, 2025, and February 24, 2026, and the Money Flow Index confirmed buyers were putting real volume into the dip.

Despite that, the rally reversed within days. On-chain supply distribution shows why. Between February 24 and 27, major whale cohorts simultaneously reduced holdings, distributing roughly 2.15 billion ADA in three days. The 1 billion-plus cohort cut about 1.02 billion ADA between February 24 and 25 (from 2.90 billion to 1.88 billion); the 100 million–1 billion cohort fell from 3.47 billion to 2.61 billion by February 27 (about 860 million); the 10 million–100 million group shed around 220 million; and the 1 million–10 million tier offloaded roughly 50 million.

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