Cardano Whales Trigger $200M Sell-Off: Will ADA Drop Below $1?

Cardano’s (ADA) price has seen a steady decline, raising concerns that it may drop below the crucial $1 support level. The primary reason for this downtrend is the aggressive sell-off by whale investors. Large holders of ADA, particularly those controlling between 100 million and 1 billion tokens, have offloaded approximately $200 million worth of ADA over the past week, according to data from Santiment. This mass sell-off has increased selling pressure, reflecting waning confidence in the asset’s short-term performance.

Profit-Taking Accelerates Selling Pressure

The profitability of ADA transactions has fueled more sell-offs. Santiment’s data reveals that ADA’s Network Realized Profit/Loss has been positive in the last week, showing that many traders have been cashing in on gains. This trend has likely encouraged more investors to follow suit, exacerbating the price decline. With growing concerns, smaller investors may also resort to panic selling, which could push the price even lower.

On-chain analyst Ali Martinez highlighted significant whale activity during ADA’s recent price fluctuations. Whales secured profits as ADA’s price rose from $1.15 to $1.33. However, when the price fell to $0.91, whales began accumulating again, purchasing 160 million ADA. This shift in whale strategy suggests opportunistic buying at lower prices.

Surge in High-Value Transactions

In addition to whale movements, Cardano’s network experienced a surge in large transactions. Over 687 transactions, each valued at over $1 million, occurred within 24 hours. This spike in activity points to increased interest from large investors, signaling heightened market volatility.

Notably, addresses holding between $1 million and $10 million ADA saw a 67.29% increase over the last month. This rise marks the most significant growth among wallet categories, reflecting renewed interest from medium-tier investors. Despite this development, market sentiment remains evenly split between bullish and bearish outlooks.

Currently, ADA trades at $1.03, just below the $1.07 resistance level. If selling pressure continues, the price could fall to $0.92. On the flip side, a breakout above $1.07 could propel the price toward $1.34, its highest level in two years. Traders remain on high alert, watching for decisive moves that could signal the next major price direction.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.