Cardano’s 30-day growth rate of 269.5% has grabbed the attention of the entire cryptocurrency community, for the fact that it is the second best-performing among the top ten cryptos after XRP (419.9%). Thanks to Cardano whales. Undoubtedly, the role whales have played in this surge is immense. Meanwhile, some recent reports indicate that Cardano no longer enjoys the favour of whales. What’s next? A fall?
A key indicator of whale activity, the netflow metric, has seen a significant drop—from 63.58 million ADA to just 7.62 million ADA. This means that at least 55.96 million ADA has likely been sold by whales, which is cause for concern.
Why the sudden shift? One possible reason is the upcoming ADA Token Unlock event scheduled for December 6, which will release 18.53 million tokens. Whales may be adjusting their portfolios in anticipation of the increased market volatility that typically follows such events.
The possibility of volatility is also reflected in technical indicators. The Bollinger Band is showing increased bandwidth, signaling potential price swings, which is clearly visible on Cardano’s chart.
Exactly the same is what the Relative Strength Index conveys. The RSI, which currently stands at 82.44, confirms that the market is currently in the overbought range. A market entering the overbought range naturally triggers the fear of price correction and volatility in traders.
Last month was an exceptional period for the Cardano market. Never in recent history has the market shown a monthly performance better than November’s 201%. Defining November’s performance is simple: a steep climb with just one notable correction of 11.44%. This month also, Cardano continues the legacy of November, though the only anomaly was the minor drop of 0.705% reported yesterday. Currently, the ADA price stands at $1.2344.
What Are the Risks?
If the current trend of whale selling continues, experts warn that Cardano’s price could drop to as low as $0.92, representing a 25.46% decline.
However, if whales return to accumulating ADA, the price could rise. In a more bullish scenario, experts predict a potential target of $1.33, offering hope for those who believe in a continued uptrend.
Cardano’s price surged due to strong whale activity, a 269.5% growth rate, and investor optimism surrounding ADA.
Cardano’s price could reach $1.33 if whales resume accumulation; otherwise, it may decline to around $0.92 due to current volatility.
The price of ADA could surge to a maximum of $1 by the end of 2024.
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