In the current climate of market uncertainty, Cardano’s native cryptocurrency, ADA, is exhibiting bearish trends. Recent activities by significant holders, commonly referred to as “whales,” have shown a pattern of substantial sell-offs, contributing to this downward trend.
Whales Unload 70 Million ADA Tokens
On January 9, 2024, a well-known crypto analyst shared insights on X (formerly known as Twitter) regarding the actions of crypto whales, who have offloaded a staggering 70 million ADA tokens. This large-scale sell-off transpired over the past 48 hours, signifying the onset of a market downturn. The repercussions of this massive unloading are visible in ADA’s price, which has plummeted by over 20% since the initial phase of this market decline.
ADA Price Analysis and Future Projections
The recent sharp decline in ADA’s value has resulted in a breach of a critical support level at $0.95. The cryptocurrency appears to be closing a daily candle beneath this level, raising concerns among investors. If ADA concludes a daily candle below this pivotal support point, it is highly likely to experience a further 20% drop, potentially reaching the $0.75 threshold.
According to Trading View data, ADA’s Relative Strength Index (RSI) is approaching the oversold zone, suggesting a possible rebound. However, the ongoing whale sell-off places doubt on any short-term recovery prospects.
Exchanges Witness a $51 Million ADA Outflow
In addition to the significant sell-offs observed in the last 48 hours, there are indications that some long-term ADA holders are accumulating. On-chain analytics from Coinglass reveal that exchanges have seen an outflow of more than $51 million worth of ADA tokens. This demonstrates that many holders are withdrawing these substantial amounts from exchanges, potentially signifying accumulation and hinting at a possible buying opportunity.
Considering an upcoming political event, this juncture might present an ideal opportunity to “buy the dip.” Presently, ADA is trading near $0.92, experiencing a 7.5% price drop over the past day. This decline has instilled fear among traders and investors, resulting in reduced trading volumes.
In conclusion, while the current market dynamics for ADA appear challenging, the landscape could shift with potential accumulation by savvy investors. Keeping a close eye on market trends and on-chain data will be crucial for those looking to navigate these turbulent waters effectively.
