As the market continues to face uncertainty, the native token of the Cardano blockchain, ADA, is showing signs of bearishness as whales have been observed dumping their holdings.
Whales Sell-Off 70 Million ADA Tokens
On January 9, 2024, a well-known crypto expert shared on X (formerly Twitter) that crypto whales have offloaded a significant 70 million ADA tokens.
The post on X highlighted that this substantial dump took place over the last 48 hours, marking the beginning of a market crash. The impact of this massive sell-off is evident in the ADA price, which has plummeted by more than 20% since the market downturn commenced.
ADA Technical Analysis and Price Prediction
This sharp decline in price has caused ADA to break below a critical support level at $0.95, with indications of closing a daily candle below it. With recent price movements, there is a possibility that if ADA closes a daily candle below this key support level, it could see a further decline of around 20% to reach the $0.75 mark.
Despite ADA’s Relative Strength Index (RSI) nearing oversold territory, signaling a potential for an upward rally, the continuous selling pressure from whales raises doubts about a short-term recovery.
$51 Million Outflow from Exchanges
In addition to the significant sell-offs in the past two days, there have been indications of long-term holders accumulating ADA, as per insights from the on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow has revealed that exchanges have experienced an outflow of over $51 million worth of ADA tokens. This suggests that holders have withdrawn substantial amounts from exchanges, hinting at potential accumulation and a potential buying opportunity.
Given the upcoming political event, this could be an opportune moment to consider buying the dip.
Currently, ADA is trading around $0.92, with a price drop exceeding 7.5% in the last 24 hours. This decline has instilled fear among traders and investors, resulting in a decrease in trading volume.