The native cryptocurrency of the Cardano blockchain, ADA, is navigating through turbulent waters due to market uncertainties. A recent development concerning Cardano’s token unlock has heightened fears among traders and investors, sparking concerns about a possible decline in ADA’s price.
Cardano (ADA) Token Unlock Scheduled
On December 24, 2024, the crypto insights provider, Tokenomist, disclosed on X (formerly known as Twitter) that the Cardano blockchain is preparing to release 18.53 million ADA tokens, valued at approximately $16.37 million, on December 26, 2024. This significant token release constitutes about 0.05% of Cardano’s total circulating supply. Following this event, Cardano will have unlocked 85.44% of its maximum ADA supply, a milestone that could influence investor sentiment and market dynamics.
ADA Current Price and Potential Impact
The unlocking of tokens in any blockchain project often results in increased inflows into exchanges, thereby creating selling pressure and potentially leading to a decrease in the token’s price. For ADA, market analysts are cautious, forecasting a possible price dip in the near future.
At the time of writing, ADA is trading close to $0.93, having witnessed a price increase of over 8% within the last 24 hours. However, the trading volume has decreased by 5% during the same period, indicating that traders and investors remain wary of a potential price drop, which might contribute to reduced market participation.
Cardano (ADA) Technical Analysis and Upcoming Levels
Technical analysis experts have observed that ADA has been consolidating within a narrow range of $0.86 to $0.97 over the past five trading days. The resolution of this consolidation phase could be pivotal in determining whether ADA experiences an upward rally or a downward trend.
Recent price actions suggest that if ADA can break out of the consolidation range and close a daily candle above the $0.98 threshold, it could potentially surge by 25%, reaching the $1.25 level. On the contrary, if ADA falls below this range and closes a daily candle under the $0.85 mark, it might decline by 12%, moving towards the next support level at $0.75.
Currently, the overall sentiment in the cryptocurrency market seems to be on the mend after experiencing significant price declines in recent days. Investors and traders are closely monitoring ADA’s performance, as it could provide insights into broader market trends and future price movements.
