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Cardano whale activity has taken a dramatic turn, with large holders dumping a staggering $69 million ADA ahead of this week’s token unlock. This massive sell-off has sparked concerns about potential price volatility, leaving investors wondering if the Cardano price will plummet.
According to IntoTheBlock, Cardano’s large holders’ netflow reached 63.58 million ADA on December 2, indicating a strong buying trend among whales. However, this trend has since reversed, with the netflow plummeting to 7.62 million ADA. This drastic decline suggested that whales offloaded 55.96 million ADA either to take profits or rebalance their portfolios. At Cardano’s current price, this sell-off amounts to a staggering $69 million.
The recent sell-off may be tied to the upcoming token unlock on December 6, which is expected to release 18.53 million ADA into circulation. This anticipated supply shock could introduce volatility, potentially hindering Cardano’s ability to sustain an uptrend.
Token unlocks can have a significiant impact on price movements, said Alex Krüger, a prominent cryptocurrency analyst. The release of previously restricted tokens can alter supply and demand dynamics, leading to increased volatility.
Cardano’s daily chart reveals a worrying sign: Cardano’s Bollinger Bands (BB) have widened, indicating heightened volatility. The BB also highlights whether an asset is overbought or oversold. With ADA touching the upper band, it signals an overbought condition.
According to Tokenomist (formerly Token Unlocks), Cardano is set to release 18.53 million ADA on that date, valued at $22.79 million. This anticipated supply shock could introduce volatility, potentially hindering the altcoin’s ability to sustain an uptrend during this period.
The Relative Strength Index (RSI) further supports this bias, with a reading of 82.15 firmly placing ADA in overbought territory. Given this condition, a price correction to $0.92 could be next.
Cardano’s price movement has been impressive, but it’s due for a correction, said Michael van de Poppe, a renowned cryptocurrency trader. The RSI is overbought, and the Bollinger Bands are widening. A pullback to $0.92 is likely.
When the price touches the upper band, it signals an overbought condition, while contact with the lower band indicates oversold territory. Therefore, the image below confirms the thesis that ADA is overbought.
The Relative Strength Index (RSI), which measures momentum, also aligns with the bias. When the RSI reading is above 70.00, it is overbought. On the other hand, when the reading is below 30.00, it is oversold.
At press time, Cardano’s RSI stands at 82.15, firmly placing ADA in overbought territory. Given this condition, a price correction to $0.92 could be next. However, if Cardano whales resume accumulation, the trend could shift, potentially pushing the price above $1.33
Cardano whale activity has been a key driver of price movement in recent weeks. With large holders accumulating and dumping tokens, it’s essential to monitor their activity to anticipate potential price movements.
Cardano whales have been instrumental in driving the price up 270% in the last 30 days, said Charles Hoskinson, Cardano’s founder. Their activity is crucial in determining the direction of the market.
The recent sell-off by Cardano whales has sparked concerns about potential price volatility. With the token unlock on the horizon, investors are bracing themselves for a potential price correction. As Cardano whale activity continues to drive price movement, it’s essential to monitor their actions to anticipate what’s next for ADA.
It’s essential to monitor Cardano whale activity, as their actions can significantly impact the market. If Cardano whales resume accumulation, the trend could shift, potentially pushing the price above $1.33 .Get more from The Bit Gazette
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