In recent weeks, Cardano's token has shown growth; however, the recent massive sale might affect its price.
Whales Selling ADA
In the past two weeks, Cardano touched a price of $0.90. According to X user Ali Martinez, large investors (known as 'whales') decided to cash in by offloading 140 million ADA, equivalent to over $120 million. Following this move, the total holdings of whales shrank to 5.46 billion ADA, or less than 15% of the asset’s circulating supply.
Growth Prospects
Despite the selloff, analysts on X remain optimistic about the asset's potential to rally. Martinez suggested the price might reach $0.92 upon confirming a bullish breakout above $0.84. Other analysts, such as Clifton Fx, noted a bullish flag pattern and predicted a possible surge to $1.80.
Market Signals
While whales are dumping millions of ADA tokens, there has been a predominantly negative exchange net flow. This indicates that investors are shifting towards self-custody methods, reducing immediate selling pressure. Some analysts suggest that the market for ADA might be poised for growth following significant developments in the broader ecosystem.
While the whale sell-off might create temporary downward pressure on ADA’s price, the optimism among analysts and the negative exchanges netflow could signal the potential for future upside.
