Whale Cardano (ADA) sells 70 million tokens in 48 hours, causing ADA price to drop?

Bittime - Amid market uncertainty, ADA, the native token of the Cardano blockchain, appears bearish as whales are found dumping their holdings. On January 9, 2024, a prominent crypto expert posted on X (formerly Twitter) that crypto whales had dumped a significant 70 million ADA tokens.

This massive sell-off occurred within 48 hours and suggested that a market crash may have begun. The impact of this sell-off has been reflected in the price of ADA, which has fallen by more than 20% since the market crash began.

This substantial price drop has caused ADA to break one of its important support levels at $0.95, and looks set to close the daily candle below it. If the altcoin closes a daily candle below this crucial support level, there is a high probability that the price of ADA could drop further by 20% to reach the $0.75 mark.

Nonetheless, ADA's Relative Strength Index (RSI) is approaching oversold territory, suggesting a potential upside rally, although the ongoing selloff by whales casts doubt on a near-term recovery.

Also read: Solana Price Prediction by Ali Martinez: Could Break $4,000?

$51 Million Outflow from Exchanges

In addition to the prominent sell-off in the past 48 hours, some long-term holders seem to be accumulating ADA. Data from on-chain analytics firm Coinglass shows that exchanges have witnessed outflows of over $51 million worth of ADA tokens.

This suggests that token holders have withdrawn this sizable amount from the exchange, indicating potential accumulation and further hinting at buying opportunities.

Currently, ADA is trading near $0.92 and has seen a price drop of over 7.5% in the last 24 hours. This price drop has created fear among traders and investors, leading to a decrease in trading volume.

Although there is uncertainty, this significant outflow could be a signal that some investors see long-term potential in ADA.

Cardano (ADA) Technical Analysis and Price Prediction

With the price decline taking place, technical analysis shows that ADA is in a critical phase. If the price continues to decline and closes the daily candle below $0.95, there is a high probability of seeing further declines. However, if ADA can hold this support level, there is a chance for a rebound.

Cardano (ADA) price predictions in the short term suggest that if the bearish trend continues, the price could reach the $0.75 level. However, if there is a trend reversal, the price of ADA could return to its previous levels above $1.00. Investors should remain vigilant and monitor price movements and trading volumes to determine their next move.

Also read: Why is the Crypto Market Down and Sluggish Today?

Conclusion: What Will Happen Next?

With the Cardano (ADA) whale selling 70 million tokens, the crypto market is currently in a state of flux. While there is potential for further declines, the significant outflows from exchanges suggest that some investors still believe in the long-term prospects of ADA.

Investors are advised to conduct a thorough analysis and consider external factors that may affect the price of ADA. With ongoing developments in the crypto market, it is important to stay informed and ready to make informed decisions.

FAQ

Why did Cardano (ADA) price drop after whale sold 70 million tokens?

Cardano (ADA) price dropped after the whale sold 70 million tokens as this huge sell-off created uncertainty in the market. The sale led to a price drop of more than 20%, and many investors became concerned about the potential for further declines.

What impact did the $51 million outflow from exchanges have on the ADA price?

The $51 million outflow from exchanges indicates that some long-term holders are accumulating ADA, which could indicate a potential buying opportunity. Despite the price drop, this accumulation could be a positive signal for ADA's long-term prospects.

What is the Cardano (ADA) price prediction going forward?

The Cardano (ADA) price prediction shows that if the price closes the daily candle below $0.95, there is a possibility of a further decline until it reaches $0.75. However, if ADA can hold this support level, there is a chance for a rebound back to levels above $1.00.

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References

coinpedia.org, Cardano (ADA) Sell-Off Imminent? Whales Sell 70 Million Tokens, accessed on January 9, 2025.

Author: AWW