Cardano Whales Sell $69 Million ADA
Cardano (ADA) has been hot lately, with a price increase of 270%, largely driven by those whale investors. But now, they have started to sell, just before the token unlock this week.
Currently, ADA is at $1.23 each. Will this sell-off cause the price to drop again?
On Monday, Cardano whales were still buying vigorously, with a net purchase of 63.58 million ADA. But now, the net purchase has dropped to 7.62 million ADA, indicating what? The whales sold 55.96 million ADA, having either made enough profits or wanting to adjust their portfolios. This sell-off means a loss of $69 million.
According to BeInCrypto observations, this sell-off is related to the token unlock on December 6. Token unlocking refers to the release of previously locked tokens into the market; once released, the supply-demand dynamics change, causing price fluctuations.
Tokenomist mentioned that on the 6th, Cardano will release 18.53 million ADA, worth $22.79 million. With so many tokens coming in, isn’t the price bound to fluctuate? Maintaining an upward trend will be difficult.
Looking at Cardano's price chart, the Bollinger Bands have widened, indicating increased volatility. When the price hits the upper band, it means too much buying; when it hits the lower band, it indicates excessive selling. Currently, ADA is being bought too much.
Furthermore, the Relative Strength Index (RSI) also shows that ADA is overbought. An RSI above 70 indicates excessive buying; below 30 indicates excessive selling. The current RSI is 82.15, firmly placing ADA in the overbought zone.
So, the price might pull back to $0.92. But if those whales start buying again, the price could potentially surge above $1.33.
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