Cardano Price Downtrend: Whales Offloading $120 Million ADA
Cardano (ADA) experienced a significant drop below the $0.50 level on January 19, following a period of gains in the first 10 days of the month. This downward trend can be attributed to a sell-off by Cardano whale investors. The on-chain data reveals that these whales have sold 240 million ADA between January 17 and January 19, reducing their balances from 18.3 billion ADA to 8.1 billion ADA. The current value of the sold-off tokens is estimated at $120 million. This decline in whale balances is seen as a bearish signal and could put further downward pressure on ADA price.
Further Downside for Cardano Price?
The ongoing downtrend in Cardano price is largely driven by the selling frenzy of whales. Without a significant increase in market demand, ADA price is expected to continue downsizing. However, there is a possibility for bullish support at the $0.48 level, where 53,600 addresses have acquired 204 million ADA at a minimum price of $0.48. If this support level fails, it could trigger more panic selling and push prices towards $0.45. On the other hand, if Cardano price manages to break out above $0.60, it could invalidate the negative forecast, although there is a strong sell-wall at the $0.51 area.
Hot Take: Cardano Whales Impacting Price Movement
The recent downturn in Cardano price can be attributed to significant selling by whale investors, who have offloaded $120 million worth of ADA tokens in just three days. As whale balances decrease, it creates a bearish signal and puts pressure on ADA price. While there is potential for support at the $0.48 level, a breakdown could lead to further selling and a drop to $0.45. Bulls may be able to counter this trend if they can break above $0.60, but they will face resistance at the $0.51 area. Overall, the actions of Cardano whales are impacting price movement and should be closely monitored by traders.
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