ADA, the native token of the Cardano blockchain, is experiencing a bearish trend as whales have been selling off their holdings. Recently, a prominent crypto expert revealed that over the past 48 hours, whales have dumped a significant 70 million ADA tokens. This indicates that the market crash has begun. The impact of this dump is already reflected in the ADA price, which has declined by more than 20% since the market crash started.
Due to this substantial price decline, ADA has breached a crucial support level at $0.95. If the altcoin continues to close daily candles below this support level, there is a strong possibility that it could decline further by 20% and reach the $0.75 mark. Meanwhile, ADA’s Relative Strength Index (RSI) is nearing oversold territory, suggesting a potential for an upside rally. However, the ongoing sell-off by whales raises doubts about a short-term recovery.
In the past 48 hours, there has been a significant outflow of ADA tokens from exchanges, totaling over $51 million. This indicates that long-term holders are accumulating ADA and withdrawing substantial amounts from exchanges. This hints at a potential buying opportunity. Considering the upcoming political event, this may be an ideal time to buy the dip.
Currently, ADA is trading around $0.92 and has experienced a price decline of over 7.5% in the past 24 hours. This decline has caused fear among traders and investors, leading to a decrease in trading volume.
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