- Cardano whale netflow data shows a significant reduction in buying interest, with large holders selling approximately 56 million ADA tokens worth around $69 million.
- A scheduled token unlock of 18.53 million ADA could increase supply on the market, putting pressure on ADA’s price.
Cardano (ADA) price recently rallied by a whopping 275% in the last month, per a CNF report. However, ADA now stands under increased scrutiny as whale activity has hinted at shifting market dynamics. Major token holders have reduced their holdings ahead of the December 6 token unlock, potentially setting the stage for increased price fluctuations.
Currently, the ADA price trades at $1.23, down by around 3%. Moreover, analysts are closely tracking whether the sell-off by a whale in millions of dollars will send the prices down in the near term.
Cardano Whale Netflow Signals Selling Pressure
According to IntoTheBlock, whale activity data revealed significant changes in their behavior. On December 2, the netflow of large Cardano holders, which measures the difference between those tokens purchased and sold, was a healthy 63.58 million ADA. This metric indicated strong buying interest.
However, for the last few days, the netflow has dramatically decreased to 7.62 million ADA. It suggests that Cardano whales sold a whopping 55.96 million ADA tokens. The current rate of the market is $1.23 per ADA, which amounts to roughly $69 million in liquidated tokens. Market players believe the whales’ actions could be profit-taking or portfolio readjustment.
ADA Price Faces Uncertainty Amid Token Unlock
With a token unlock slated for December 6, another level of complexity has entered the mix. Tokenomist suggests that 18.53 million ADA, valued at $22.79 million, is set to hit the open market. This has meant that token unlocks generally drive prices because they change the supply-demand ratio, and with this, the trader waits for the next volatile day.
The token unlock will challenge the recent uptrend in the price of ADA as whale and retail demand wares off. Meanwhile, on the technical side, the indicators point out that ADA may witness a price correction. The Bollinger Bands in the daily chart have opened up and show increased volatility. Currently, the crypto is trading close to the upper band, an area of overbought.
Supporting this view, the Relative Strength Index (RSI) for Cardano stands at 82.15. This reading is well above the threshold of 70, which confirms that the asset is overbought. In such zones, assets tend to be in a good position for a retracement.
Thus, crypto analysts believe that in case of continued selling pressure, there may be a pullback towards $0.92. However, if whales renew accumulation, it could undo the trend and drive the prices above the resistance of $1.33. As reported by CNF, some market analysts also expect the ADA price rally to continue till $10.
