The 17% drop in the Cardano (ADA) price in the last week indicates a significant change in market sentiment. This decline was driven primarily by profit taking and selling by large investors.
This price decline was accompanied by a 139% decrease in net flows from large investors, indicating reduced accumulation among major investors in the asset and weakening market confidence.
According to market data, the decline in Cardano’s market value to realized value (MVRV) ratio suggests that the probability of ADA testing critical support levels has increased, and in particular, a drop to the $0.77 level is likely.
Layer-1 coin Cardano (ADA) has lost 17% of its value over the past week, marking a significant shift in market dynamics. This price drop comes after a previous period of consolidation and was driven by increased profit-taking among investors and selling by large investors.
Recent trading data suggests a cautious approach among investors, especially large investors. According to data from IntoTheBlock, Cardano’s net flows among large investors have decreased by 139%. This is a sign that whales are moving their assets off the exchange, which is usually a sign of a bear market. These sales occurred among large investors who own more than 0.1% of the ADA supply and reflect a lack of confidence in the altcoin’s future price movements. This negative sentiment is also reflected in the decline in the MVRV ratio. As of December 11, this ratio has fallen to 72.35%, according to data from Santiment, while it had peaked at 113% a week ago. This suggests that optimism around ADA is decreasing.
In terms of technical analysis, ADA is currently trading at around $1.01. As market conditions change, analysts are noting that the $0.90 level is a critical support level. If profit-taking continues, the probability of ADA testing this level may increase. If this support level is broken, the price could drop to $0.77. This is a scenario that has many investors and analysts worried.
On the other hand, if buying interest returns, ADA could recover and approach the $1.06 resistance level. If bull market conditions strengthen again, Cardano could also reach its two-year peak of $1.32.
In summary, Cardano’s recent price movements reflect a period of uncertainty shaped by the selling and profit-taking of major investors. ADA is undergoing a significant test at critical support levels, and investors should be careful. If bearish pressures continue, a drop to $0.77 is possible. However, with an increase in buying interest, a price recovery is also possible. Following current developments and analyzing market trends is critical for investors.
