Cardano (ADA) Whales Take Profit, Price At Risk of Shedding Some Gains

Cardano's price rally in the past few days has led to a surge in realized profits among its holders.

Cardano's (ADA) recent price rally has brought about a surge in realized profits among its holders. As ADA's price climbs toward $1.15, realized profits reached a weekly high of $73.33 million on January 15.

This spike in realized profits has prompted a wave of coin distribution among ADA whales, evident in the declining large holders' netflow. According to IntoTheBlock, ADA's large holders' netflow dropped by 90% during the week in review.

Large holders are whale addresses that hold more than 0.1% of an asset's circulating supply. Their netflow measures the difference between the amount of an asset they sell and buy over a specific period.

A spike in an asset's large holder netflow indicates significant amounts of the asset moving into whale wallets, suggesting accumulation. As with ADA, a drop in netflow, on the other hand, shows that large holders are selling off their holdings. This signals a potential decrease in the asset's price or a shift in market sentiment.

ADA Price Prediction: Breakout Retest Fails, Reversal Likely

An assessment of the ADA/USD one-day chart reveals a failed attempt to retest ADA's breakout line. The coin now trades within the symmetrical triangle pattern, which it recently broke out of.

When a breakout retest attempt fails, the asset's price has not been able to sustain the breakout level, indicating weak support. This confirms the reversal in ADA's uptrend.

If the decline continues, ADA's price will fall to $0.94. On the other hand, if market sentiment improves, it could push ADA's price above the upper line of the symmetrical triangle, which forms resistance at $1.03.