Recently, Cardano's (ADA) price has been declining, raising concerns about a potential drop below the $1 support level. A key factor in this is the selling activity by major investors.
Whales Trigger Sell-Off
According to Santiment data, in the past week, large investors have sold about $200 million worth of ADA. This has added pressure on the market and could lead to panic selling by smaller investors.
Traders Lock In Profits
The recent profitability of ADA transactions led to increased sell-offs. Data indicates trades have been profitable over the past week, prompting other investors to sell and contributing to the recent price decline. On-chain analyst Ali Martinez noted whales took profits as ADA rose from $1.15 to $1.33. When the price fell to $0.91, they started buying again, accumulating 160 million ADA since the dip.
Market Sentiment Remains Balanced
In the past month, addresses holding between $1 and $10 million in ADA rose by 67.29%. Despite this positive trend, overall market sentiment remains balanced between bullish and bearish views. Currently, ADA is trading at $1.03, just below resistance at $1.07.
While the sentiment for ADA remains balanced, future price movements will heavily depend on the actions of major holders and broader market behavior.
