Cardano (ADA) Price Drop: Whale Activity & Market Sentiment
Cardano (ADA) Price Decline: A Deeper Look
Cardano's ADA price experienced a near 10% drop last week, exceeding the broader cryptocurrency market downturn. This decline is largely attributed to reduced buying activity from large holders (whales).
Reduced Whale Buying Activity
Data from IntoTheBlock shows a 90% plunge in Cardano's large holder netflow over seven days. This metric, measuring the balance between ADA inflows and outflows to whale wallets (holding over 0.1% of circulating supply), clearly indicates significant selling pressure.
Source: IntoTheBlock
This diminished whale activity can negatively influence retail traders, potentially triggering further selloffs and suppressing buying interest, exacerbating the price drop.
Market-Wide Sell-Offs
The selling pressure extends beyond Cardano whales. On-chain data from Santiment's Network Realized Profit/Loss (NPL) metric confirms a broader market sell-off. A positive NPL value indicates that more investors are selling at a profit than at a loss, further contributing to increased supply.
Source: Santiment
ADA Price Prediction & Technical Analysis
The Relative Strength Index (RSI) on ADA's daily chart, currently below 50 at 45.49, confirms the increased selling pressure. While not yet in oversold territory, this suggests potential for further decline.
Source: TradingView
The price could potentially drop to a 30-day low of $0.82 if the current trend persists. However, a shift in market sentiment and increased accumulation could reverse this bearish outlook, potentially pushing the price back above $1.
Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Market conditions are volatile. Conduct thorough research and consult a financial professional before making investment decisions.
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