Amid market uncertainty, ADA, the native token of the Cardano blockchain, appears bearish as whales have been found dumping their holdings.
Whales Sell-Off 70 Million ADA Tokens
Today, January 9, 2024, a prominent crypto expert posted on X (formerly Twitter) that crypto whales have dumped a significant 70 million ADA tokens.
The post on X also noted that this significant dump occurred over the past 48 hours, indicating that the market crash had begun. However, the impact of this substantial dump has already been reflected in the ADA price, which has declined by over 20% since the market crash began.
ADA Technical Analysis and Price Prediction
This substantial price decline has caused ADA to breach one of the crucial support levels at the $0.95 mark, and it appears to be closing a daily candle below it. Based on the recent price action, if the altcoin closes a daily candle below this crucial support level, there is a strong possibility it could decline further by 20% to reach the $0.75 mark.
Meanwhile, ADA’s Relative Strength Index (RSI) is nearing oversold territory, suggesting a potential for an upside rally, the ongoing sell-off by whales casts doubt on a short-term recovery.
$51 Million Outflow from Exchanges
Besides the notable sell-offs in the past 48 hours, some long-term holders seem to be accumulating ADA, as reported by the on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow revealed that exchanges have witnessed an outflow of over $51 million worth of ADA tokens. This suggests that token holders have withdrawn these substantial amounts from exchanges, indicating potential accumulation and further hinting at a potential buying opportunity.
Based on the upcoming political event, this may 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 past 24 hours. This price decline has created fear among traders and investors, leading to a decline in trading volume.
