Amidst the current market uncertainty, the ADA token, which is the native token of the Cardano blockchain, is showing bearish signs as whales have been spotted dumping their holdings.
Recent reports on January 9, 2024, revealed that crypto whales have sold off a significant 70 million ADA tokens. This massive dump took place over the past 48 hours, signaling the beginning of a market crash. The impact of this sell-off has already been felt in the ADA price, which has plummeted by more than 20% since the market downturn started.
As a result of this substantial price drop, ADA has broken through a critical support level at $0.95 and seems poised to close below it on a daily candle. Looking at the recent price movements, if ADA does indeed close below this crucial support level, there is a strong possibility that it could decline by another 20% to reach the $0.75 mark.
Despite the potential for an upside rally indicated by ADA’s Relative Strength Index (RSI) nearing oversold territory, the ongoing trend of whale sell-offs casts doubts on any short-term recovery.
In addition to the significant sell-offs by whales, there have been reports of long-term holders accumulating ADA. On-chain analytics firm Coinglass reported that exchanges have seen an outflow of more than $51 million worth of ADA tokens. This withdrawal of tokens from exchanges suggests that holders are accumulating ADA, potentially signaling a buying opportunity for investors.
With an upcoming political event on the horizon, this could present an ideal opportunity to buy the dip in ADA. Currently trading near $0.92, ADA has experienced a price decline of over 7.5% in the past 24 hours, leading to a decrease in trading volume and heightened fear among traders and investors.
As the market remains uncertain and whales continue to offload their holdings, it will be crucial to monitor ADA’s price movements and market trends closely in the coming days to determine the best course of action for investors.