- Cardano whales and large wallet investors sold 600 million ADA tokens since May 2022, actively trading the Ethereum-killer altcoin.
- An on-chain indicator revealed signs of capitulation in Cardano, similar to the March 2020 Covid crash.
- Analysts believe Cardano price is set to witness a pullback to collects liquidity.
Cardano price bounced back after suffering a decline in the FTX-triggered crash in crypto this week. The token of the smart contract platform hit a low of $0.34 over the past 24 hours and analysts predict a close above the $0.38 level.
Also read: Investigating Samuel Bankman-Fried’s FTX and Alameda implosion and Terra connection
Cardano whales sold 600 million ADA tokens
Cardano price has sustained above the $0.34 level despite selling pressure from large wallet investors. Whales sold 600 million ADA tokens worth $204 million since May 2022.
Balance of Addresses Holding between 100,000 to 10,000,000 ADA
The Ethereum-killer altcoin nosedived 11% over the past week, in response to FTX’s liquidity crisis and bloodbath in crypto.
Cardano fared better than most other altcoins in top 30 cryptocurrencies by market capitalization, in the FTX-triggered crypto bear market. Cardano price cracked support at $0.38 today before plunging to $0.30.
Cardano is currently changing hands at $0.34, amid a unanimous push by bulls to close the day above key support at $0.38. John Isige, technical analyst at Crypto News believes Cardano’s price rally may be short-lived given the risk-off market sentiment.
ADAUSD price chart
Cardano shows signs of capitulation similar to Covid crash
Evaluating the Network Realized Profit/ Loss divided by actual price indicator, it is evident that Cardano is showing signs of capitulation similar to March 2020. Net realized profit/ loss metric presents the overall magnitude of profit or loss realized by all holders spending the asset. It is assessed relative to the price when a coin last moved.
Big capitulation events usually occur in two waves, the second wave is shorter than the first. The first wave attracts traders looking to book quick profits before the second wave.
Network Realized Profit/Loss divided by actual price
RektCapital, pseudonymous crypto analyst and trader believes Cardano price would need to close the week above $0.36 for a relief rally to continue. Unless that happens, it is possible that the $0.33 level comes into play as support for Cardano price.
ADAUSD price chart
The analyst recommends watching whether the $0.33 level is weakening as support before making a move in Cardano.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.