ADA, the native token of the Cardano blockchain, is facing challenges amidst the current market uncertainty. The recent update regarding Cardano’s token unlock has raised concerns among traders and investors about a potential price drop.
Cardano (ADA) Token Unlock Scheduled
On December 24, 2024, Tokenomist, a crypto insights provider, shared on X (formerly Twitter) that the Cardano blockchain is scheduled to unlock 18.53 million ADA tokens valued at $16.37 million on December 26, 2024. This significant token unlock represents 0.05% of Cardano’s total circulating supply and will bring the total unlocked ADA supply to 85.44%.
ADA Current Price and Potential Impact
Historically, when a project unlocks its tokens, it often leads to increased selling pressure and a subsequent price decrease as tokens are deposited on exchanges. Analysts anticipate that ADA may experience a price decline following the token unlock.
At the moment, ADA is trading around $0.93, showing an 8% increase in the last 24 hours. However, the trading volume has decreased by 5%, indicating investor caution and a potential price dip in the near future.
Cardano (ADA) Technical Analysis and Upcoming Level
Technical analysis reveals that ADA has been consolidating within a narrow range of $0.86 to $0.97 over the past five trading days. The breakout from this consolidation phase will likely determine ADA’s future price movement.
If ADA breaks above the $0.98 level and closes a daily candle, it could surge by 25% to reach $1.25. Conversely, a breakdown below $0.85 and a daily candle close could result in a 12% decline, with the next support level at $0.75.
Overall, the sentiment in the cryptocurrency market seems to be recovering after recent price fluctuations. Traders and investors are closely monitoring ADA’s price action following the token unlock to gauge its future trajectory.
In conclusion, while ADA may face short-term challenges due to the token unlock, its technical analysis suggests potential for both upward and downward price movements. Stay tuned for further updates on Cardano’s performance in the coming days.