Cardano (ADA) Faces Selling Pressure Amid Profit-Taking, Potentially Testing Support at $0.90 or Dropping to $0.77

  • The recent decline of Cardano (ADA) by 17% over the past week highlights significant shifts in market sentiment as profit-taking and whale sell-offs dominate.

  • This fall is compounded by a staggering 139% reduction in large holders’ netflow, signaling decreased accumulation and wavering confidence from the asset’s key investors.

  • According to market data, the declining Market Value to Realized Value (MVRV) ratio indicates an increasing likelihood of ADA testing crucial support levels, particularly the potential drop to $0.77.

Cardano (ADA) has seen a 17% price decline driven by significant profit-taking and sell-offs among large holders, signaling bearish market sentiment.

Market Dynamics: Understanding Cardano’s Recent Price Drop

Layer-1 coin Cardano (ADA) has faced notable challenges in the crypto market, particularly over the past week, where it has experienced a decline of 17%. This downturn comes after a period of price consolidation, indicating a shift in market dynamics. The primary catalysts for this recent sell-off include increased profit-taking among existing holders alongside notable selling activity from large investors, commonly referred to as whales.

The recent trading patterns reflect a cautious approach from the investor community, particularly among large holders. Data from IntoTheBlock reveals that Cardano’s netflow among these major players has plunged by 139%, indicating that these whales are moving their holdings off exchanges, which often signals a bearish outlook.

Cardano Large Holders' Netflow.

The sell-off among large holders—including those owning over 0.1% of ADA’s supply—points to a broader lack of confidence in the altcoin’s future price trajectory. This sentiment is echoed by the decline in the Market Value to Realized Value (MVRV) ratio. As of December 11, data from Santiment indicates that this ratio has fallen to 72.35%, down from a peak of 113% just a week prior, further illustrating the weakening optimism surrounding ADA.

Cardano MVRV Ratio

Technical Analysis: Navigating Support and Resistance Levels

From a technical analysis perspective, ADA currently trades at approximately $1.01. As market conditions evolve, analysts point to a significant support level at $0.90. If profit-taking persists, the likelihood of ADA testing this critical support becomes higher. Should this level fail, the price could drop further down to $0.77—an outlook that concerns many investors and analysts in the space.

On the upside, however, if buying momentum returns, ADA may have the potential to rebound and approach a resistance level of $1.06, with the possibility of reaching its two-year high of $1.32 if bullish sentiment resumes.

Cardano Price Analysis.

Conclusion

In summary, Cardano’s recent price movements underscore a period of uncertainty influenced by large holder sell-offs and profit-taking. As it faces critical support levels, investors must remain vigilant. Should bearish pressures continue, ADA may indeed slide to $0.77. Conversely, a resurgence in buying interest could pave the way for an upward correction. Staying informed and analyzing market trends will be crucial for navigating the current landscape.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Trump Highlights Severe Trade Tensions Between U.S. and Europe Amid Heavy Taxes and Lawsuits

On June 28th, U.S. President Trump highlighted the complex...

Bitcoin Sees Massive 11,770 BTC Outflow from Major CEXs Including Coinbase Pro and Binance

According to the latest data from Coinglass, centralized exchanges...

Bitcoin Spot ETF Sees $2.214 Billion Net Inflow in U.S. as BlackRock Leads with $1.31 Billion

According to data from Farside Investors, the United States...

TRUMP Token Liquidity Pool Drains $6.77 Million in Major Withdrawal, Reports OnChain Lens

According to OnChain Lens data reported by COINOTAG News...

US Senate’s $4.2 Trillion Tax Plan Sparks Debate Ahead of Bitcoin Deadline

The U.S. Senate, under Republican control, has unveiled a...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img