The post Whale Sell-Off of Cardano (ADA) Raises Concerns Over Market Momentum and Potential Recovery appeared on BitcoinEthereumNews.com.

Whales have sold over 70 million ADA, triggering uncertainty in the market as pivotal metrics suggest a bearish trend. The sell-off escalated, significantly impacting ADA’s price, with markets now closely watching support levels that could determine its next move. According to COINOTAG, “The recent sell-off has heightened concerns among investors, leaving Cardano on shaky ground.” Whale activity has led to a notable sell-off of ADA, raising concerns about its stability. Explore how this impacts market dynamics and potential recovery. Impact of Recent Whale Activity on ADA Prices The overwhelming whale sell-off has resulted in a drastic drop in ADA’s price, which is now nearing critical support levels. The market capitalization of ADA has plummeted to $32.87 billion, reflecting a decline of 6.08%. This sharp drop emphasizes the extent of the market’s reaction to the selling pressure initiated by whales. Additionally, the Stock-to-Flow ratio, a key metric used to assess the scarcity of ADA, has declined from 291.37 to 288.50. This shift indicates waning investor confidence as metrics for scarcity and demand trend lower. Source: Santiment Furthermore, the derivatives market has shown pronounced bearish signs. For example, on Binance, the Funding Rate has dropped from 0.01% to 0.0055%, reflecting diminished bullish sentiment among traders leveraging their positions. Source: Santiment In the same vein, DYDX exchange’s Funding Rates fell sharply from 0.000334 to 0.000057, underscoring the loss of optimism among market participants. This suggests that traders are now recalibrating their positions in light of potential volatility and bearish sentiment. Source: Santiment Moreover, the MVRV Ratio (Market Value to Realized Value) has also experienced a decline, falling from 0.92 to 0.769. This represents a troubling sign for ADA holders, indicating that many are now facing losses as prices continue to drop. Overall, these indicators collectively demonstrate the breadth of the impact that whale…

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Filed under: News - @ January 9, 2025 10:26 am