Amid market uncertainty, ADA, the native token of the Cardano blockchain, is showing weakness as whales are found to be dumping their holdings.
Whale sells 70 million ADA tokens
Today, January 9, 2024, a prominent cryptocurrency expert posted on X (formerly Twitter) that cryptocurrency whales have dumped a significant 70 million ADA tokens.
X’s post also noted that this significant dump occurred in the last 48 hours, indicating that the market crash had begun. However, the impact of this massive dump has already been reflected in ADA prices, which have fallen by more than 20% since the market crash began.
ADA technical analysis and price prediction
Due to this significant price drop, ADA broke through one of the important support levels at $0.95 and appears to be closing the daily candle below it. Based on recent price action, if the altcoin closes its daily candle below this important support level, it is likely to fall another 20% and reach the $0.75 level.
Meanwhile, ADA’s Relative Strength Index (RSI) is nearing oversold territory, suggesting the possibility of an upward rally, while the ongoing whale sell-off raises doubts about a near-term recovery.
$51 million leaked from exchanges
In addition to the notable sell-off over the past 48 hours, some long-term holders appear to be hoarding ADA, according to a report by on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow shows that $51 million worth of ADA tokens were leaked from exchanges. This means that token holders have withdrawn significant amounts from the exchange, indicating potential accumulation and hinting at a potential buying opportunity.
Given the upcoming political events, this could be an ideal opportunity to buy the dip.
Currently, ADA is trading near $0.92 and has witnessed a price decline of over 7.5% in the last 24 hours. This price drop has sparked fear among traders and investors, leading to a decline in trading volume.