Cardano (ADA) Whales on Panic Selling Mode: Here’s Why

 

  • Cardano’s price appears to hold the line following the 57% slump to $0.384.
  • Nevertheless, the immediate obstacle at $0.677 might limit further recovery by ADA.
  • A daily candle closing beneath $0.397 will annul the already precarious optimistic tale.

Cardano sees its price staying well beyond the latest swing low that printed a possible bottom for the alt. Though this recovery appears impressive, massive hurdles plus bearish on-chain indexes could limit further upticks.

Cardano Price Should Prove Its Strength

Cardano dropped 57% from 6 May and approximately 87% from the $3.11 all-time high. The last act of this colossal fall emerged after the LUNA-UST crisis that saw the entire marketplace in a bloodbath. The latest southward move appears to stabilize after hitting the support floor at $0.397.

The alternative token has recovered about 47% since then to $0.55, its current value. While the uptrend was attractive, extending the leg-up appears unlikely amid multiple challenges plaguing Cardano’s recovery road.

The closest resistance zone sat at $0.677, and ADA will likely form a local high in the area, capping further upsides. Overcoming this barrier will see the alt at the crucial obstacle at $0.785, then $0.900. These hurdles might ensure a dead stop for Cardano’s bullish actions.

Also, whales’ reaction according to the supply distribution graph supports Cardano’s bearish case. The investor category falling at 10,000 – 100,000 Cardano tokens has been offloading since 10 April. These investors declined from around 22,500 to 20,500, translating to an 8.8% drop.

Whales with 100K to 1 million coins also revealed a similar trend. This category noted a 4.7% drop to 121,500 from 127,600. Meanwhile, the most vital group that purchased between 1 million – 10 million Cardan tokens declined to 2,540 from 2,589 within the past two weeks.

Besides the number of assets they hold, whales have resorted to selling. That shows long-term investors losing confidence in the project and ADA’s price performance. Nevertheless, Cardano’s price producing a daily candlestick closing beneath $0.397 will cancel the feeble bearish narrative through a lower low. Such a move can see ADA losing another 23% to $0.307.

Stay tuned for upcoming cryptocurrency news.

Leave a Reply

Your email address will not be published.

Related

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]

GlobalTrades Review, GlobalTrades.io – Is Global Trades Scam or a Good Broker?

GlobalTrades Trading Platform Rating 4.6 Summary Read our Global Trades review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is globaltrades.io scam or legit” and much more! https://globaltrades.io/ GlobalTrades Review As people look at cryptocurrencies and their immense success, they are eager to start their own trading businesses. While […]

Belgium Regulator Sets To Impose New Crypto Ads Rules

The Belgium government has mandated that every firm offering crypto advertisements should register with it before launching any campaign. Henceforth, any crypto advertisement without the government’s backing would be treated as an offense with heavy consequences. According to the report, the Financial Services and Markets Authority (FSMA) of Belgium recently announced that every potential crypto […]

Profit-taking on BTC Surge, As Price Breaks The $27,000 Threshold

It has just been confirmed that BTC has experienced the most extensive profit-taking activity since the last quarter of 2020. This information was obtained from data released by Santiment, an on-chain data analytics company. The released data also states that the profit-to-loss volume of the day-to-day ratio on on-chain transactions was one of the major […]

Governments Who ban Drugs Should Ban Crypto Too, Said Belgium’s Ex-Finance Minister

The former finance minister of Belgium, Johan Van Overtveldt, reportedly suggested that any country that bans drugs should also ban crypto assets. According to reports, he made the statement during the recently concluded European Parliament meeting. During the meeting, the parliament was reportedly deliberating on the effect the recent collapse of three crypto-friendly banks, Silvergate […]