Who's buying the dip as Cardano sentiment hits 5-month low?

The altcoin bullish rally fell flat as the leader, Ethereum, witnessed heavy selling pressure after hitting a fresh all-time high (ATH). Amid this, Cardano’s retail investors are growing pessimistic just as large holders appear to be buying the dip. Data shows that market sentiment around ADA dropped to its lowest level in five months.

The cumulative digital assets market is witnessing mixed reactions from traders. Some are buying the dip while others are selling at the top. The fear and greed index is flashing “Neutral” sentiments while tilting towards fear.

However, Bitcoin dominance dropped by over 3% in the last 24 hours to hover around 57%, suggesting that altcoin season is still in.

Whales eye Cardano as traders exit

Data shared by Santiment shows that Cardano investors were among the worst hit when Bitcoin price took a dip. Over the last month, ADA price traded around the $0.7 zone and went on to breach the $1 mark. However, the bullish attitude soon faded, and it dipped back again to $0.8 area.

Cardano price is up by 10% in the last 30 days and 42% over the past 60 days, but over the last 7 days, it dropped almost 6%. ADA is trading at an average price of $0.81 at press time. It is still lagging behind by 73% from its ATH of $3.10, recorded on September 2, 2021. Its 24-hour trading volume is down by around 30% to stand at $850 million.

This is a divergence that analysts say often precedes upside. Prices typically move in the opposite direction of the crowd’s expectations. The analyst noted that when smaller traders capitulate out of frustration, that’s typically when deeper-pocketed investors step in.

Audit clears Cardano voucher program

The network itself has shown unusual strength. In the past week, Cardano processed more than $5.3 billion in transactions, making it one of its busiest weeks of 2025. Analysts flagged the combination of higher active wallet addresses and growing open interest in futures markets as signs of deeper liquidity. The community believes a push toward $1.00 is on the table.

Adding to the backdrop, Input Output Global (IOG) released the results of a months-long forensic audit into Cardano’s voucher program. It was the mechanism used to distribute ADA before its 2017 launch. The 128-page report, conducted by law firm McDermott Will & Schulte alongside accounting firm BDO, found no evidence of manipulation or fraud.

The audit followed allegations earlier this year that founder Charles Hoskinson had misused a “genesis key” during a 2021 hard fork to seize hundreds of millions in ADA. Investigators confirmed that 99.2% of all vouchers had been redeemed by mid-August 2025. This represents 99.7% of the ADA originally sold. The small remainder was legally transferred to a Cayman foundation for ecosystem development and community governance initiatives.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.