$200 Million ADA Sell-Off Sparks Concerns, ADA To Drop Below $1?

Cardano’s (ADA) price has been declining recently, and concerns are growing that it could drop below the $1 support level. Notably, a key factor causing the drop is the selling activity by whales, who have been cashing out their coins to profit from their recent gains. 

Whales Trigger Sell-Off

As per data from Santiment, over the past week, whales holding between 100 million and 1 billion ADA have sold about $200 million worth of ADA. This has added selling pressure to the market, signaling a loss of confidence in the asset. As a result, this could also result in panic selling by smaller investors may also sell, further driving down the price.

Traders Lock In Profits

The recent profitability of ADA transactions has led to increased selloffs. Data shows that ADA’s Network Realized Profit/Loss has been positive over the past week, indicating that traders are selling for profit. This has likely encouraged other investors to sell, contributing to the price decline in recent days.

On-chain analyst Ali Martinez recently noted that Cardano whales took profits as ADA rose from $1.15 to $1.33. However, after the price dropped to $0.91, they started buying again, accumulating 160 million ADA since the dip. In a separate post he also noted that a massive surge in whale activity on the ADA network, as 687 transactions exceeding $1 million were recorded in the past 24 hours. 

Market Sentiment Remains Balanced

Also, over the last month, there has been notable growth among addresses holding between $1 million and $10 million in ADA, which rose by 67.29%. This increase is the most significant observed compared to other wallet categories. Despite this positive trend, the overall market remains balanced between bullish and bearish sentiment.

Currently, ADA is trading at $1.03, just below resistance at $1.07. If selling continues, the price could fall to around $0.92. However, if it breaks above $1.07, the price could rise to $1.34, which is the highest it has been in two years.