ADA, the native token of the Cardano blockchain, is struggling amid market uncertainty. Recent news about an upcoming token unlock has heightened concerns about a potential price dip.
Cardano (ADA) Token Unlock
Today, December 24, 2024, a crypto insights provider, [Tokenomist](https://x.com/Tokenomist_ai/status/1869966317199180236), shared on X (formerly Twitter) that the Cardano blockchain plans to unlock 18.53 million ADA tokens worth $16.37 million on December 26, 2024. This substantial token unlock accounts for 0.05% of Cardano’s total circulating supply. With this unlock, Cardano will have unlocked 85.44% of its maximum ADA supply.
ADA Current Price and Potential Impact
According to data, when a project unlocks its respective tokens, it typically causes trading volumes to increase, leading to selling pressure and subsequent price declines. For ADA, experts and analysts suggest that the token might face a price drop in the coming days. At press time, ADA is trading near $0.93 and has seen a price surge of over 8% in the past 24 hours. However, during the same period, its trading volume dropped by 5%, indicating that traders and investors are still uncertain about a potential price drop, which might explain the lower participation.
Cardano (ADA) Technical Analysis
According to expert technical analysis, ADA has been consolidating within a tight range of $0.86 to $0.97 over the past five trading days. A breakout from this consolidation zone could determine whether ADA will rally or decline in the future.
Based on recent price activity, if ADA breaks out of the consolidation zone and closes a daily candle above the $0.98 mark, it is highly likely to rally by 25% to reach the $1.25 mark. Conversely, if ADA breaks down from the consolidation zone and closes a daily candle below the $0.85 level, it could decline by 12% to reach the next support level at $0.75. As of now, the sentiment across the cryptocurrency landscape appears to be recovering after notable price declines in recent days.
The ADA token remains under pressure due to the upcoming unlock, raising concerns over its price. However, technical indicators suggest potential changes in the near future that traders and investors should be aware of.
