$200 Million ADA Sell-Off Fuels Fears of Cardano Price Falling Below $1

As a seasoned crypto investor who has weathered numerous market storms and witnessed the rise and fall of various digital assets, I can’t help but feel a sense of deja vu when observing Cardano‘s recent downtrend. The selling activity by large ADA holders, or as we like to call them in the crypto world – whales, is reminiscent of similar patterns that have preceded significant corrections in the past.

The value of Cardano (ADA) has been on a downward spiral lately, causing worry that it might fall below its current support level of $1.

One significant reason for this decrease could be the offloading of ADA by substantial investors, commonly known as “whales.” These Cardano investors are likely cashing in on their coin assets, capitalizing on recent profits.

Cardano Whales Trigger Selloffs

Analysis by BeInCrypto indicates that a substantial amount of Cardano’s supply has been offloaded by its wealthiest investors over the last week. As per Santiment’s findings, entities owning between 100 million and 1 billion ADA have transferred approximately $200 million worth of coins in the past seven days.

When major cryptocurrency owners decide to offload their digital coins, it often indicates a decline in their faith in the asset and creates intense selling pressure within the market. This increased supply can cause prices to plummet, particularly if the market’s demand is insufficient to soak up the massive sell-off. This downward trend might also provoke additional panic selling among smaller investors, exacerbating the pressure on the asset’s price.

Additionally, the profits from transactions involving ADA over the last several days seem to be driving a rise in sell-offs. According to data from Santiment, the Network Realized Profit/Loss of the coin has remained positively valued for the past seven days, suggesting that traders have been cashing out their gains.

It seems that this situation might have caused some investors to cash out their ADA tokens to secure their profits, which could be a factor leading to its recent decrease in value.

ADA Price Prediction: The $1.07 Price Level Is Key

Currently, ADA is priced at approximately $1.02, hovering slightly under the resistance established at $1.07. If selling pressure continues, any attempts to surpass this resistance could be unsuccessful, potentially leading to a drop in price down to around $0.92.

Conversely, if this resistance is successfully broken, it could drive up the value of ADA to a two-year peak of $1.34, a level last seen on December 3.

Read More

2024-12-18 15:20