Cardano Price Plunges as Whales Dump Tokens

Due to profit-taking by Cardano whales, the ADA price has fallen below $0.7, extending a sharp correction from its $0.8 peak on March 14. Crypto analytics platform Santiment reveals a decline in whale transactions ($100,000+) and dormant ADA token movement since that date, suggesting profit-taking may have triggered the decline.

Cardano Price Drop Attributed to Whale Activity

The recent decline in Cardano's (ADA) price below the psychological threshold of $0.7 has been attributed to profit-taking by whales, according to data from crypto analytics platform Santiment.

Whale Transactions Drive Price Correction

Since Cardano's peak of $0.8 on March 14, there has been a notable reduction in whale transaction activity (transactions exceeding $100,000). This suggests that ADA whales have been gradually exiting their positions, contributing to the token's price correction.

Crypto whales are known to have a significant influence on market dynamics, and their selling activity often leads to price declines. The profit-taking behavior observed in ADA is not unique to the Cardano ecosystem, as investors have been cashing out in various cryptocurrencies in recent weeks.

Bitcoin and Long-Term ADA Holders Join Sell-Off

Bitcoin, the flagship cryptocurrency, was also not spared from this wave of profit-taking after its parabolic surge towards a new all-time high of $73,750. Long-term ADA holders seized the opportunity to lock in gains, as Santiment data indicates a significant number of dormant ADA tokens were transacted during this period.

Long-Dormant ADA Tokens Move

March 20 proved to be a particularly active day for these long-term holders, with over 200 million dormant ADA tokens (held for over a year) being moved.

ADA's Path to $1 Remains Viable

Despite the recent decline, Cardano appears to be recovering from the profit-taking activity, albeit at a slower pace. Analysts believe the token could potentially break the $1 resistance barrier in its next upward move.

Crypto analyst Dan Gambardello has predicted that ADA could rally to $1.4-$1.5 if it can establish a breakout above the $0.8 price range.

Whale Returns Expected

Whale transactions exceeding $100,000 are expected to resume soon, indicating a renewed accumulation interest in ADA. An uptick in these transactions could drive the token's price higher, depending on the level of bullish sentiment among these investors.

Current Market Position

At the time of writing, ADA is trading around $0.6513, representing a decline of approximately 4% over the past 24 hours.

Disclaimer

The information provided in this article is for informational purposes only and should not be construed as financial advice. Investing in cryptocurrencies involves significant risk, and investors should conduct their own research before making any investment decisions.