Cryptocurrency » Panic Whales Sell Cardano

Whales sell Cardano amid market panic

  • Cardano price appears to be holding the line after falling 57% to $0.384.
  • Any further rally is capped by the immediate hurdle at $0.677.
  • A daily candle close below $0.397 would disprove the fragile bullish thesis.

The price of the Cardano (ADA) cryptocurrency is hovering well above the recent swing low that marked a potential bottom. This rally, while impressive, is likely to be limited due to multiple headwinds and bearish action in the channel.

Cardano price needs to prove its worth

The price of the Cardano cryptocurrency (ADA) has dropped 57% since May 6 and is down 87% from its all-time high of $3.11. The latest phase of this massive decline was associated with the UST-LUNA fiasco, which led to the crash of the market. The recent move south seems to have stabilized after a support level was noted at $0.397.

Since then, the price of Cardano has recovered 47% to its current trading level of $0.55. While this move makes a lasting impression, further growth in the uptrend seems unlikely due to a series of obstacles ahead.

The immediate resistance barrier at $0.677 is likely to be a local high for the Cardano cryptocurrency price and this is where the upside potential can be capped. Beyond this barrier, the $0.785 and $0.900 levels are two important barriers that could stop the bullish momentum.

Cardano Daily Chart (ADA/USDT)

The behavior of the whales, as seen in the supply distribution chart, further supports the bearish price prediction of the Cardano cryptocurrency. A group of investors holding between 10,000 and 100,000 ADA tokens are dumping their holdings from April 10th. This category dropped from almost 22,500 to 20,500, indicating a fall of 8.8%.

The same trend was observed for whales holding between 100,000 and 1,000,000 ADA tokens. The number of these investors decreased from 127,600 to 121,500, down 4.7%. The largest set of holders who accumulate between 1 and 10 million ADA tokens has grown from 2589 to 2540 in the last two weeks or so.

Regardless of how many tokens they hold, whales have been on the market for quite some time now. This development indicates that long-term holders are losing confidence in the project and therefore in the performance of the ADA cryptocurrency.

ADA Supply Distribution

distribution of ada cryptocurrency cardano

As the price of Cardano rises, a daily candle near $0.397 will refute the already shaky bullish thesis by creating a lower low. In this case, the price of ADA cryptocurrency could fall another 22% to $0.307.

Akash Girimat, FXStreet

Akash has been working in the crypto industry as a content writer and analyst for over two years. He is a mechanical engineer interested in new technologies and financial markets. Lured by the chaos of trading, he has invested in cryptocurrencies and maintains a small crypto fund for his friends and family.

The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, so you should do your own research when making a decision.

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Disclaimer: The information and opinions contained in this report are for general information only and do not constitute an offer or solicitation to buy or sell foreign exchange contracts, CFDs and cryptocurrencies. Although the information contained herein has been obtained from sources believed to be reliable, the author does not warrant its accuracy or completeness and shall not be liable for any direct, indirect or consequential damages that may result from anyone relying on such information.

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