Cardano’s 18.53M ADA Unlock Sparks Fear, Price Crash Ahead?
ADA, the native token of the Cardano blockchain, appears to be struggling amid ongoing market uncertainty. To add insult to injury, the latest news regarding the unlocking of the Cardano token has sparked concerns among traders and investors about a potential price drop.
Cardano (ADA) Token Unlock Program
Today, December 24, 2024, a cryptocurrency insights provider, Tokenistposted on X (formerly Twitter), revealed that the Cardano blockchain will unlock 18.53 million ADA tokens on December 26, 2024, worth $16.37 million.
The report further states that this large amount of token unlocks represents 0.05% of Cardano’s total circulating supply. With the recent token unlock, Cardano will unlock 85.44% of its ADA maximum supply.
ADA current price and potential impact
According to the data, whenever a project unlocks its respective token, it typically flows into exchanges, leading to selling pressure and subsequent price drops. In the case of ADA, experts and analysts say that the coin may face a price drop in the coming days.
At press time, ADA was trading close to $0.93, with the price surging more than 8% in the past 24 hours. However, its trading volume fell by 5% during the same period, indicating that traders and investors are still worried about potential price drops, which may explain the lower participation.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA has been consolidating within a tight range of $0.86 to $0.97 for the past five trading days. A breakout of this consolidation area could determine whether ADA rises or falls in the future.
Based on recent price movements, if ADA A daily candle that breaks out of the consolidation area and closes above the $0.98 mark is likely to rise by 25% to reach the $1.25 mark. Conversely, if ADA breaks out of the consolidation zone and closes below $0.85, a 12% drop to the next support level at $0.75 is possible.
As of now, sentiment across the cryptocurrency space appears to be recovering after significant price declines in recent days.
