Whales Dumped 200 Million ADA Tokens in March, Triggering Price Drop to $0.637

This sell-off was not just a random movement of funds. It coincided with a visible price decline in the ADA market.

New on-chain data revealed that large investors, commonly referred to as whales, moved approximately 200 million ADA tokens in March.

According to the blockchain analytics firm Santiment, wallets holding between one million to ten million ADA gradually reduced their positions throughout the month. This activity was in contrast to the actions of institutional investors, who had been pouring money into Cardano.

As the analysis reveals, this sell-off was not just a random movement of funds. It coincided with a visible price decline in the ADA market.

Whales were reducing their holdings as the ADA price fell from $0.808 to $0.637 during March.

This sell-off by large investors could be linked to a bearish technical outlook for Cardano.

The current price of Cardano (ADA) is around $0.6792, showing a slight recovery after falling to a recent low of $0.637. However, the overall trend for ADA still appears weak.

This is because the price is trading below all important moving averages, including the 20-day, 50-day, 100-day, and 200-day exponential moving averages (EMA). These moving averages usually help traders identify the trend. When the price stays below them, it often means that sellers are still in control.

The Relative Strength Index (RSI), which measures market momentum, is currently at 43.97. This is below the neutral level of 50, suggesting that buyers are not yet strong enough to push prices higher. The RSI also shows no signs of a strong reversal, meaning that the market has not shifted to a bullish trend yet.

In the past few weeks, ADA has consistently struggled to hold above the $0.70 mark. Every time the price tries to move higher, it faces resistance, especially around $0.7128, where the EMA 20 is acting as a barrier. The EMA 50 around $0.7552 is also likely to be a strong resistance if the price manages to move up.

For ADA to change its trend from bearish to bullish, the price will need to move above $0.7128 and hold there. This would also need to be supported by a rise in trading volume and an improvement in the RSI above 50.

However, despite this activity, institutional investors have not abandoned ADA. According to a report by blockchain analysis firm Collective Wisdom Coins, March saw an influx of $63.3 million in institutional funds into Cardano.

The post Whales Dumped Nearly 200M ADA Tokens in March As ADA Price Fell From $0.8 To $0.637 appeared first on Collective Wisdom Coins.