Can Cardano hold THIS critical support after 70M whale sell-off?
The post Can Cardano hold THIS critical support after 70M whale sell-off? appeared on BitcoinEthereumNews.com.
Whale sell-offs intensified, dropping ADA’s price and key metrics like the Stock-to-Flow ratio. ADA’s recovery depends on holding critical support levels amid bearish market sentiment. Since AMBCrypto covered this news 24 hours ago, whales have made even more moves, selling over 70 million Cardano [ADA] in the last 48 hours. This significant sell-off has sent shockwaves through the market, further pressuring ADA’s price and key performance metrics. At press time, ADA was trading at $0.9352, marking a 5.79% drop over the past 24 hours. With traders facing increased uncertainty, questions arise about whether Cardano can regain momentum or if further losses are inevitable. How the sell-off has impacted ADA The first noticeable effect of the whale activity has been ADA’s sharp price drop, now approaching critical support levels. This intense selling pressure has reduced ADA’s market cap to $32.87 billion, a 6.08% decrease, showing the market’s reaction’s extent. Moreover, the Stock-to-Flow ratio has fallen from 291.37 to 288.50, highlighting weaker investor confidence as scarcity and demand metrics trend lower. Source: Santiment In addition to this, the derivatives market has shown significant bearish signals. On Binance, the Funding Rate dropped from 0.01% to 0.0055%, reflecting a reduction in bullish sentiment among leveraged traders. Source: Santiment Similarly, DYDX exchange Funding Rates plummeted from 0.000334 to 0.000057, further emphasizing the decline in market optimism. These movements suggest traders are repositioning to account for increased volatility and downside risks. Source: Santiment Furthermore, the MVRV Ratio—a metric evaluating profitability among holders—dropped from 0.92 to 0.769. This decline indicates that ADA holders are experiencing heightened losses as the price continues to fall. Combined, these metrics illustrate the impact of the whale sell-off, which has left traders and investors with limited confidence in ADA’s near-term performance. Source: Santiment Can Cardano recover? Despite the bearish outlook, ADA may find…
Filed under: News - @ January 9, 2025 10:25 am