Published: Feb 5, 2025 at 01:15 AM
Updated: Feb 4, 2025 at 07:56 PM
- ADA whales have sold over 330 million coins, increasing bearish pressure on Cardano’s price.
- Large transaction volumes have dropped 8%, signaling waning sentiment among ADA whales.
- Despite current declines, analysts suggest a possible rebound in the coming weeks as RSI shows signs of reset.
Cardano’s price has experienced a bearish shift following a significant sell-off by ADA whales. Crypto analyst Ali Martinez shared that these whales offloaded over 330 million ADA coins amid the ongoing market downturn. This selling activity has raised concerns about increasing selling pressure, which could push the price of Cardano even lower.
The majority of ADA’s whale investors demonstrate negative market attitudes at present. The Cardano network showed a more than 8% decrease in large transaction volume as recorded by IntoTheBlock because investors shifted their attitudes. The market showed a strong reaction to sell-offs through the recent 24-hour trading volume reaching $7.46 billion. The ongoing liquidation activities by ADA Whales create potential downward trends for the currency price.
Recent market data indicates excessive investor withdrawals exceeding $2 billion during the weekend as the main reason behind this sudden price decrease. The general market decline affected Cardano’s value which experienced a 36% drop point. As the price broke through key support levels, experts have raised the possibility of additional downside risk. The situation highlights the vulnerability of ADA to broader market trends, especially when large holders liquidate their positions.
Despite the current negative outlook, some analysts see potential for a reversal. Crypto expert Sebastian noted that the next few weeks could prove pivotal for ADA. After experiencing an intense bounce and closing a green daily candle, Cardano’s relative strength index (RSI) briefly hit oversold levels, resetting in a way that might signal a potential upward movement. If the market turns in favor of ADA, it could recover to the psychological $1 level, with the possibility of rallying to $1.6.
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