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06/08/2024

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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...

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

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.

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.

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.

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.

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

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn. Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later). Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley! So, he landed a killer gig at NewsBTC and Bitcoinist, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill). Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair. Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better. Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies. Looking ahead, Christian sees a future intertwined with NewsBTC and Bitcoinist. He says he sees himself “growing old” alongside these companies, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects. So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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