Whale Sell-Off Sparks Selling Pressure
Over the past seven days, the netflow of Cardano for large holders has decreased by 90%, according to data from IntoTheBlock. Large holders, or whales, control over 0.1% of the asset’s supply, and their actions frequently affect market patterns. A drop in netflow indicates that whales are selling off their holdings, which raises supply and drives down prices.
This decline could trigger a chain reaction among retail traders. If they see whales exiting, they might follow suit, fearing further losses. This can accelerate ADA’s downturn, especially if broader market sentiment remains weak.
Profit-Taking Adds to Selling Pressure
Cardano‘s Network Realized Profit/Loss (NPL) went positive on Wednesday, according to Santiment’s on-chain data. The market supply is growing as a result of more merchants selling at a profit. Prices may continue to decline if demand is unable to keep up.
What’s Next for ADA?
The RSI of ADA stands at 45.49, which indicates an increased selling pressure in this cryptocurrency, although it has not reached oversold conditions yet; hence, further declines before its probable rebound may be expected.
Unless buying activity picks up, ADA could hit a new 30-day low in the coming days.
