Will Cardano Whales Continue to Sell Ahead of Token Unlock?
Cardano (ADA) whales, which drove the cryptocurrency price up 270% in the past 30 days, have now sold off a large amount of the token. The sell-off comes ahead of this week’s token unlock, which market participants expect will result in volatility.
As of this writing, ADA is trading at $1.23. Will this sell-off lead to further price declines?
Cardano key holders offloaded some coins
On Monday, December 2, net flow from major Cardano traders reached 63.58 million ADA, reflecting the strong buying trend of whales. The net flow metric tracks the difference between tokens bought and sold by these key players. An increase in net flow indicates accumulation, a decrease indicates selling pressure.
According to data from IntoTheBlock, as of now, the net flow of ADA has plummeted to 7.62 million, which shows that whale unloading 55.96 million ADA — used to take profits or rebalance portfolios. At Cardano’s current price, the sale amounted to a whopping $69 million.
According to BeInCrypto’s observations, the recent sell-off may be related to the upcoming token unlock on December 6.
Token unlocking is the release of previously restricted tokens into circulation, often driving significant price movements by changing supply and price. Require dynamics.
According to Tokenomist (formerly Token Unlocks), Cardano is set 18.53 million ADA were issued on that day, worth US$22.79 million. This expected supply shock could bring volatility that could hamper the altcoin’s ability to sustain an uptrend during this period.
ADA Price Prediction: Overbought, possible pullback
On the daily chart, Bollinger Bands for Cardano (BB) expands, indicating increased volatility. The BB line also highlights whether an asset is overbought or oversold.
when price hits upper limit bandit signals overbought conditions, while contact with the lower band indicates oversold territory. Therefore, the chart below confirms the thesis that ADA is overbought.
Relative Strength Index (relative strength index), a measure of momentum, is also consistent with bias. When the RSI reads above 70.00, it is in an overbought condition. On the other hand, when the reading is below 30.00, it is oversold.
At press time, Cardano’s RSI is 82.15, firmly placing ADA in overbought territory. Given this situation, the next price adjustment may be to $0.92. However, if Cardano Whales Recovery Accumulationthe trend could shift, potentially pushing the price above $1.33
Disclaimer
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