Cardano Bloodbath? Sell-Off Raises Fears Of ADA Price Drop


Cardano
(ADA),
the
smart
contracts
platform
aiming
to
dethrone
Ethereum,
is
facing
a
balancing
act.
While
the
token
has
seen
a
recent
price
increase,
a
potential
exodus
by
major
investors
casts
a
shadow
of
doubt.


Related
Reading


Will
Whales
Drag
ADA
Down?

On-chain
data
reveals
a
cause
for
concern
for
Cardano
bulls.
Addresses
holding
a
significant
amount
of

ADA
(between
1
million
and
1
billion
tokens)
have
been
selling
their
holdings.
This
behavior
by
“whales,”
as
these
large
investors
are
known,
can
be
a
bearish
indicator,
suggesting
a
loss
of
confidence
in
the
project’s
future.
Historically,
such
selloffs
have
often
preceded
price
dips.

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While
some
might
view
low
volatility
as
a
sign
of
stability,
in
ADA’s
case,
it
might
be
hindering
growth.
The
token’s
current
low
volatility
acts
like
a
force
field,
keeping
price
swings
in
check.
This
can
be
positive,
preventing
sharp
drops.
However,
it
also
restricts
upward
momentum
and
makes
significant
price
increases
less
likely.

Source:

Santiment


Consolidation
Or
Correction?

Two
potential
scenarios
for
ADA’s
price
have
been
observed.
If
selling
pressure
by
whales
intensifies,
ADA
could
fall
back
to
its
previous
support
level
between
$0.42
and
$0.44.
This
consolidation
phase
would
represent
a
pause
in
the
token’s
upward
trajectory.

However,
a
more
concerning
possibility
exists.
A
significant
increase
in
selling
could
trigger
a
correction,
pushing
the
price
down
to
$0.42
or
even
lower.
This
scenario
would
be
a
setback
for
ADA
bulls,
potentially
erasing
recent
gains.

ADA
market
cap
currently
at
$15.7
billion.
Chart:

TradingView.com


Cardano
Bulls
Look
For
A
Lifeline

Despite
the
bearish
undercurrents,
there
are
reasons
for
cautious
optimism.
First,
ADA
has
defied
the
selling
pressure
from
whales
with
a
nearly
5%
price
increase
in
the
last
week.
This
resilience
suggests
there
might
still
be
enough
buying
pressure
to
offset
the
selling.

Coinbase Banner  
ADA
price
action
in
the
last
24
hours.
Source:

CoinMarketCap

Second,
some
Cardano

price
predictions
remain
bullish.
Sources
anticipate
a
rise
to
$0.46
by
July
8th.
Whether
this
prediction
materializes
depends
on
market
forces,
but
it
offers
a
potential
silver
lining
for
investors.


Related
Reading


The
Fear
&
Greed
Index

Adding
another
layer
to
the
complex
situation
is
the
current
market
sentiment.
The
Fear
&
Greed
Index,
a
measure
of
investor
sentiment
across
the
cryptocurrency
market,
currently
sits
at
72,
indicating
“Greed.”

This
overall
bullish
sentiment
could
potentially
provide
some
support
for
ADA,
but
it’s
important
to
remember
that
the
index
reflects
the
broader
market,
not
just
Cardano
specifically.


Featured
image
from
Pngtree,
chart
from
TradingView

Go to Source
Author: Christian Encila


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