Big ADA Investors Accelerate Decline by Selling $200 Million Worth of Coins, Testing $1 Support
The Cardano (ADA) price has been trending down recently, raising concerns about a drop below $1. Profit takings and weakening market demand pose a risk that ADA could drop to $0.92.
One of the main reasons for the recent drop in Cardano’s price is the selling of large ADA holders, known as whales. These investors are selling their coins in order to secure their profits.
According to a report by BeInCrypto examining Cardano’s on-chain data, large investors with assets between 100 million and 1 billion ADA sold $200 million worth of ADA coins in the last week. These sales create significant selling pressure in the market, pushing prices down. If there is not enough demand in the market for such a large sale, prices could fall rapidly. If small investors panic and start selling, this could put more pressure on the price.
According to Santiment’s data, ADA transactions over the past few days have been marked by high profits. The “Network Realized Profit/Loss” metric has remained consistently positive, indicating that investors are selling in an attempt to make a profit. These high profit situations may have encouraged other investors to lock in their profits by selling their ADA coins.
At the time of writing, ADA is trading at $1.02, just below the resistance level at $1.07. If the sell-off continues, this resistance level may not be breached and ADA’s price could drop below the $1 level to $0.92.
On the other hand, a successful breakout of the $1.07 level could push the price back up and initiate a move towards $1.34, which was ADA’s two-year peak seen on December 3.
If whale selling continues and market demand is insufficient, the price of ADA may remain in a downtrend. However, if the $1.07 resistance can be overcome, a rally to $1.34 is also possible.