In the ever-evolving world of cryptocurrency, the native token of the Cardano blockchain, ADA, is currently facing bearish trends. This downturn comes in the wake of significant market fluctuations, as large-scale investors, or ‘whales,’ have been observed offloading substantial amounts of their ADA holdings.
Whales Offload 70 Million ADA Tokens: Market Implications
On January 9, 2024, a well-known cryptocurrency analyst took to X (previously known as Twitter) to reveal that whales have divested themselves of a massive 70 million ADA tokens. This massive sell-off transpired over the last 48 hours, marking the onset of a broader market decline. As a result, the price of ADA has already dropped by more than 20%, reflecting the impact of this whale-induced sell-off.
Technical Analysis and Future Price Predictions for ADA
The recent downturn in ADA’s price has led to it breaching a critical support level at $0.95. The token is on the verge of closing a daily candle below this pivotal mark. Should this happen, market analysts predict a potential further decline of 20%, potentially bringing ADA down to around the $0.75 level. According to Trading View, ADA’s Relative Strength Index (RSI) is approaching oversold territory. While this typically signals a potential for upward momentum, the ongoing whale sell-off casts a shadow over any immediate recovery prospects.
Exchange Outflows: $51 Million in ADA Withdrawn
In addition to the whale sell-off, data indicates that some long-term investors are seizing the opportunity to accumulate ADA. On-chain analytics from Coinglass show over $51 million worth of ADA tokens have been withdrawn from exchanges. This substantial outflow suggests investors are moving these tokens into private storage, potentially indicating a strategic accumulation phase and possibly signaling a buying opportunity amid current market conditions.
The presence of an upcoming political event might also present an advantageous moment to ‘buy the dip.’ At present, ADA is trading at approximately $0.92, having experienced a price drop of over 7.5% in the last 24 hours. This decline has instilled a sense of fear among traders and investors, which has in turn led to a reduction in trading volumes.
As the market navigates through this period of uncertainty, traders and investors are keenly observing these developments, particularly the behavior of whales and long-term holders, to gauge ADA’s future trajectory within the crypto sphere.
