The reason for this: ADA whales have opted for selling, creating a bearish atmosphere.
The sale of Cardano whales
The price of Cardano has already been influenced by its investors, and this influence only strengthened this Thursday, June 6. The best example of this? The recent ADA whale move, from which the altcoin is still unable to recover.
Addresses holding between 10 and 100 million ADA sold more than 290 million ADA in a single day at the end of May. This offer, worth $130 million, likely could have been used to secure gains or prevent further losses.
Regardless, given that such large portfolio sales and purchases strongly affect price direction, it is not surprising that ADA consolidated following this wave of selling.
To go further: How to buy Cardano (ADA)? We will explain everything to you
However, this situation could change, and the investors who caused the decline also have the power to do so. As of this writing, the number of addresses transacting on the network has increased.
Cardano’s growing stake is a positive sign for the asset, resulting in increased demand and higher liquidity. However, the conflicting signals generated could lead to consolidation. Additionally, an increase in participation combined with falling prices or slow growth creates a gap between the two.
To find out more: Who is Charles Hoskinson, the founder of Cardano?
This deviation tends to signal a one-time sell-off, leading to further problems with price action
ADA Prediction: Don’t Expect a Breakthrough Anytime Soon
Cardano price has been moving within a symmetrical triangle pattern for two months. A symmetrical triangle is a chart pattern with converging trendlines that connect a series of sequential peaks and troughs.
This pattern generally indicates a period of consolidation before the price explodes in the direction of its existing trend. Although the result is likely to be bullish, this would justify additional sideways movement before something more substantial for ADA. To do this, the altcoin would first need to secure the $0.46 level as a support floor.
Considering the aforementioned factors, Cardani’s bearish neutral action will likely continue its sideways movement.
However, if $0.46 is tested as a support floor, the bearish thesis could find itself nullified. Therefore, ADA could also rise to $0.50 and above, eliminating all its recent losses.
Moral of the story: Cardano is nothing without its whales.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
