Cardano (ADA) Sell-Off Imminent? Whales Sell 70 Million Tokens
Amid market uncertainty, ADA, the native token of the Cardano blockchain, appears bearish as whales have been spotted dumping their holdings.
Whale dumps 70 million ADA tokens
Today, January 9, 2024, a well-known crypto expert posted on X (formerly Twitter) that crypto whales have dumped 70 million ADA tokens.
The post on However, the impact of this massive dumping has been reflected in ADA priceIt has fallen more than 20% since the market crash.
ADA Technical Analysis and Price Forecast
The sharp drop in price caused ADA to break through one of the key support levels at the $0.95 mark and it appears to be closing on a daily basis below that level. Based on recent price action, if the altcoin closes below this key support level, a further 20% drop to the $0.75 mark is very likely.
Meanwhile, ADA’s relative strength index (RSI) is approaching oversold territory, suggesting an upside rebound is possible, with continued selling by whales casting doubt on a near-term recovery.
$51 million flows out of exchanges
In addition to the significant sell-off over the past 48 hours, some long-term holders appear to be accumulating ADA, reported on-chain analytics firm Coinglass.
Spot inflow/outflow data shows that the exchange witnessed over $51 million worth of ADA token outflows. This suggests that token holders have withdrawn significant amounts of funds from the exchange, indicating potential accumulation and further hinting at potential buying opportunities.
Based on upcoming political events, this could be an ideal opportunity to buy on the dip.
Currently, ADA is trading close to $0.92, with the price down more than 7.5% in the past 24 hours. Falling prices have caused fear among traders and investors, leading to a drop in trading volumes.
