- Cardano’s ADA faces a tense battle as it clings to a pivotal support level, raising questions about the current state of bullish momentum.
- Whales are offloading 1.02 billion ADA, worth $265 million, exerting substantial downward pressure on the token.
- Despite hopes for accumulation, relentless selling by whales threatens ADA’s price stability, leaving the crypto community speculating on its next moves.
Cardano’s ADA has been experiencing a tense tug-of-war as traders and investors closely monitor its recent price movements. ADA is firmly entrenched within a pivotal support level, creating a prime environment for potential accumulation. Nevertheless, contrary to expectations, ADA’s price dynamics have displayed an unexpected lull, prompting speculation about whether the bullish momentum has momentarily receded.
Astonishing reports have surfaced, indicating that major whales have been unloading substantial volumes of ADA, as renowned crypto analyst Ali Martinez disclosed via Twitter. This extensive sell-off has placed considerable downward pressure on the token, hampering emerging bullish trends. The figures are nothing short of astounding, with these whales purportedly parting with around 1.02 billion ADA, representing a staggering $265 million in market capitalization.
The ADA community had been hoping for substantial accumulation at these levels, given the crypto’s enticing discount. Nevertheless, the relentless sell pressure from whales threatens to neutralize any positive effects of this accumulation.
A deeper examination of ADA’s on-chain activity provides additional insight. The surge in ADA’s weighed sentiment metric at the start of September seemed to indicate a renewed surge in bullish sentiment among traders. Concurrently, the mean coin age has steadily increased over the past four weeks, signaling a growing preference for long-term holding strategies.
However, the spike in weighted sentiment turned out to be short-lived. A closer look at ADA’s supply distribution reveals that various categories of whales, particularly those holding between 1 million to 10 million ADA and 100 million to 1 billion ADA, have contributed substantial buying pressure. Interestingly, the wallets controlling the largest percentage of ADA’s circulating supply, primarily in the 10 million to 100 million range, have been exerting downward pressure through their sell-offs.
Now, with evidence that some whales are actively suppressing ADA’s price, the cryptocurrency community is left speculating about the next move. While ADA’s current support level offers an attractive accumulation zone, it certainly doesn’t guarantee immunity from further price declines. Another dip in price could entice more market activity.
As of the time of writing, ADA is trading at $0.2583. Traders and investors should watch for potential support levels in the range of $0.24 to $0.23 in case ADA experiences further capitulation. The crypto world continues to hold its breath as the battle between accumulation and whale-induced sell pressure unfolds.
