The Reasons Behind the Plummet of ADA: Whales Offloading, Market Panic, Is There Still Hope for a Short-term Rebound?

Recently, Cardano (ADA) has encountered a wave of significant sell-offs. Data shows that in the past 48 hours, some major players (whales) in the market have offloaded approximately 70 million ADA, causing the price of ADA to drop by more than 20% at one point. Currently, ADA has fallen below the critical support level of $0.95, and the next support range might be around $0.75; if this level is also breached, the price may continue to decline.

Despite the whale sell-offs causing market panic, on-chain data shows that over $51 million worth of ADA has flowed out of exchanges, indicating that some long-term holders are starting to accumulate again. This also suggests that there may be an opportunity to position oneself during price corrections in the current uncertain market environment.

From a technical perspective, ADA's Relative Strength Index (RSI) is nearing the oversold territory; although it still faces selling pressure in the short term, it also means that the potential for a rebound is accumulating. Nevertheless, given that whales are still continuing to offload, ADA's rebound in the short term may be somewhat limited.

The current market volatility may provide investors with an opportunity to adjust their positions. However, it is important to note that the market is still unstable, and cautious operations are a must.