$200 Million ADA Sell-Off Fuels Fears of Cardano Price Falling Below $1
Cardano faces sell-off pressure as whales offload $200 million in ADA. Will it drop below $1, or can a resistance break revive bullish momentum?
Cardano’s (ADA) price has been experiencing a downtrend recently, raising concerns about a potential drop below the $1 support level.
A major contributing factor to this decline is the selling activity by large ADA holders, often referred to as whales. These Cardano investors have been unloading their coin holdings, likely taking advantage of recent gains to secure profits.
Cardano Whales Trigger Selloffs
BeInCrypto’s assessment of Cardano’s on-chain performance has revealed that its whales have sold a significant portion of their holdings over the past week. According to Santiment, large holders that hold between 100,000,000 and 1,000,000,000 ADA have distributed coins worth $200 million in the past seven days.
When large holders of a cryptocurrency sell their coins, it signals reduced confidence in the asset and introduces significant selling pressure to the market. This can lower prices, especially if the market lacks sufficient demand to absorb the large sell-off. This trend may also trigger further panic selling by smaller investors, putting more pressure on the asset’s price.
Cardano Supply Distribution. Source:
Santiment
Moreover, the profitability of ADA transactions in the past few days has contributed to increased selloffs. Data from Santiment shows that the coin’s Network Realized Profit/Loss has been consistently positive in the past seven days, indicating that traders have been selling for profit.
This may have prompted other investors to sell their ADA coins to lock in their gains, contributing to its price decline over the past few days.
Cardano Network Realized Profit/Loss. Source:
Santiment
ADA Price Prediction: The $1.07 Price Level Is Key
As of this writing, ADA trades at $1.02, slightly below the resistance formed at $1.07. Any attempt to breach this resistance level will fail if selloffs persist. This may trigger a decline below the $1 price zone to $0.92.
Cardano Price Analysis. Source:
TradingView
On the other hand, a succesful breach of this resistance will propel ADA’s price to its two-year high of $1.34, last reached on December 3.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Altcoin Price Targets Point to Six 2027 Levels
The AI frenzy withstands the "5% US Treasury yield"! Nasdaq hits new highs, strengthening the "80/20" pattern as Wall Street reassesses stock-bond allocation
The 30-year US Treasury yield briefly reached about 5.53%, hitting its highest level since 2004, while Brent crude remains above $100 per barrel. Risk assets have once again withstood the pressure, reflecting investors' continued belief that the commercialization of AI applications and corporate profit growth can to some extent offset the impact of rising financing costs and discount rates.
AI infrastructure hits a "wall"! Marvell: Copper interconnects and memory bottlenecks become key to the next stage of computing power expansion
The AI computing power competition is evolving into a system-level game encompassing interconnection and memory. According to Marvell executives, inference models have driven KV cache growth by about 10 times in nine months, and rack-level memory can no longer meet demand. Copper connections are approaching their limits, making optical interconnection and memory expansion core to computing power growth. Customization has become an industry trend, and Marvell is set to benefit from its expertise in analog SerDes, photonic fabric memory, and end-to-end customization.
Which Top RWA Tokens Have the Most Real-World Use in 2026?
Crypto prices
More
