Amid market uncertainty, ADA, the native token of the Cardano blockchain, appears bearish as whales have been found dumping their assets.
Whales sells 70 million ADA tokens
Today, January 9, 2024, a prominent crypto expert posted on X (formerly Twitter) that crypto whales have dumped a significant 70 million ADA tokens.
The post on However, the impact of this substantial dump has already been reflected in the ADA price, which has fallen by more than 20% since the start of the market crash.
ADA technical analysis and price prediction
This substantial price drop has led ADA to break one of the crucial support levels at $0.95, and it looks set to close a daily candle below. Based on the recent price action, if the altcoin closes a daily candle below this crucial support level, there is a high chance that it will fall further by 20% to reach the $0.75 mark.
Meanwhile, the ADA’s Relative Strength Index (RSI) is approaching oversold territory, indicating the potential for an upward rally. The continued sell-off of whales casts doubt on a near-term recovery.
$51 million outflow from scholarships
In addition to the notable sell-off over the past 48 hours, some long-term holders appear to be accumulating ADA, as reported by on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow revealed that exchanges have witnessed an outflow of over $51 million in ADA tokens. This suggests that token holders have withdrawn these substantial amounts from the exchanges, indicating a potential accumulation and further indicating a potential buying opportunity.
Given the upcoming political event, this could be an ideal opportunity to buy the dip.
Currently trading around $0.92, ADA has witnessed a price drop of over 7.5% in the last 24 hours. This price drop has created fear among traders and investors, leading to a drop in trading volume.