Is there a mass sell-off of ADA by major Cardano investors following Charles Hoskinson's recent proposal?
Cardano's Whales Flip the Script
Looks like the big-time Cardano (ADA) investors, aka whales, have had a change of heart. After a streak of buying up an additional 120 million ADA in just two days, they've unexpectedly decided to sell over 270 million ADA worth around $170 million, as reported by our site in the beginning of the week.
These massive sell-offs have been putting the squeeze on ADA, causing the price to take a dive from $0.71 down to a dismal $0.62 before recovering to the current $0.636.
Why the sudden change, you ask? There are a few possibilities floating around. Some think it's due to the escalating geopolitical tension between Iran, Israel, and the US, while others suspect it might be a profit-taking move or risk management by these whales.
Bouncing from BTC to ADA
Adding fuel to the fire is Cardano's boss man, Charles Hoskinson, who threw a curveball by suggesting the treasury should exchange $100 million worth of ADA for BTC and stablecoins. The idea was to boost Cardano's DeFi capabilities, but some critics warned it could crank up the selling pressure even more.
Hoskinson quickly shot down these concerns, explaining there's plenty of demand from institutions for ADA to absorb any potential selling pressure.
"No worries, Cardano DeFi is on the rise, and it will offset the sale volume from a mere nibble (and yes, this is a wee nibble.)"
Is This a Dip, or a Deep Drop?
With ADA testing the important $0.60 support level, some analysts predict a drop to around $0.5 if it fails to invalidate a bearish pattern it's currently busting out of. But, there's a glimmer of hope - whales have been seen snapping up even more ADA, suggesting they believe in Cardano's long-term potential.
Considering all this, if you're an ADA holder feeling the burn, hang on tight! Cardano's future might be looking a bit shaky, but the backing of big players and positive developments within the ecosystem could light up the road ahead.
Source [*] Source [****] Source [******]
* Cardano’s whales dumped substantial quantities of ADA, causing a temporary market plunge and increased volatility. The sudden coin sell-off has been attributed to various factors such as profit-taking, market uncertainty, and technical pressures [1][3].
**** As ADA’s price neared key resistance levels and struggled to break through, bearish technical indicators (e.g., RSI dipping below 30, MACD histogram turning downward) emerged, signifying weak buying pressure and bearish momentum [3].
****** Notwithstanding the selling pressure, continuing accumulation by whales (buying up 310 million more tokens in June) may offer long-term price support and hint at the investors' confidence in Cardano’s potential recovery [2][3].
[[1] Enrichment on CoinMarketCap][2] Enrichment on Nasdaq][3] Enrichment on CoinTelegraph
- The recent sell-off of ADA by whales, causing a dip in the price, has raised questions about the impact of their trading activities on the Cardano market.
- Amidst the selling pressure, some crypto traders are looking to DeFi platforms for opportunities, with Cardano's boss, Charles Hoskinson, proposing an exchange of ADA for Bitcoin and stablecoins to boost Cardano's DeFi capabilities.
- Despite the selling of ADA by whales, there has been a reported continuous accumulation of ADA tokens by these same whales, indicating their long-term confidence in the potential recovery of Cardano.
