Over the past week, Cardano has faced significant selling pressure from large investors known as 'whales.' These investors offloaded over 100 million ADA, raising concerns about the cryptocurrency’s short-term price trajectory.
Current Trends: Selling Pressure from Large Investors
Whales, defined as holders of 1 to 10 million ADA, have been reducing their positions, which can exert downward pressure on ADA’s market value. The number of such addresses has decreased from 2,484 to 2,455, indicating a steady sell-off.
Technical Analysis: Bearish Patterns Emerge
ADA’s price chart has formed a bear pennant pattern, indicating potential further declines. A break below the $0.710 support level may accelerate losses, potentially pushing ADA’s price toward $0.50.
Contrasting Whale Behavior: Accumulation vs. Distribution
Despite the recent sell-off, whale behavior has not been uniformly bearish, with previous periods such as mid-January showing significant ADA accumulation by whales, purchasing up to 100 million tokens within a short span.
The sale of over 100 million ADA by large investors highlights a bearish sentiment in the Cardano market. Combined with emerging bearish technical patterns, ADA faces potential downward pressure in the short term. Investors should exercise caution and stay informed about market developments.
