Cardano Small Holders Sell 72 Million ADA Worth $92 Million Amid Price Surge
The price-network activity discrepancy points to potential sustainability concerns.
Critical resistance at $1.30 could determine future of the boom
The cryptocurrency market is in a dramatic state with Cardano (ADA), as its astonishing 300% price surge in five weeks creates a complex balance between continued momentum and emerging profit-taking behavior. Having crossed the psychologically important dollar mark to levels not seen in nearly two years, the market now faces a critical test of sustainability.
Cardano holders behavior
A notable trend emerged among smaller market participants, with wallets holding between 100 and 10,000 ADA shedding over 72 million tokens, worth over $92 million.
This continued selling activity over the past month represents a major shift in retail investor sentiment, as these smaller holders choose to lock in profits rather than maintain exposure to potential market volatility.
The DAA Price Divergence Indicator reveals an interesting disconnect between price action and market participation. While the ADA price continues to rise, network activity is not keeping up – a situation that traditionally signals potential sustainability concerns.
This discrepancy suggests that the current boom may be driven more by speculative forces than fundamental market demand, raising questions about its long-term sustainability.
Cardano’s recent 25% weekly surge has taken ADA to $1.29, establishing a crucial crossover point at the $1.30 resistance level. This price point represents more than just a psychological barrier – it acts as a key technical level that could determine the future trajectory of the rally.
A successful conversion of this resistance into support could pave the way for Cardano to head towards $1.50, while failure to hold this level could lead to a pullback to $1.01.
The intersection of individual profit-taking, disconnection in network activity, and critical technical levels creates a complex market environment. While the current price action remains impressive, the sustainability of this boom will depend on whether larger investors step in to absorb selling pressure from retail holders and whether market participation can more closely align with price appreciation.
The coming weeks will be crucial in determining whether this 300% surge represents the start of a larger trend or a temporary peak in the Cardano market cycle.