Whales are putting additional selling pressure on an altcoin that is about to break out of the top ten amid the FTX crisis. Since the beginning of the year, they have put millions of tokens into circulation.
Altcoin whales sell $204M ADA
Related altcoin Cardano (ADA) is struggling to recover after falling under the influence of the FTX crisis during the week. It has melted as low as $0.34 in the last 24 hours. Analysts expect it to close above $0.38. It wasn’t just the sales caused by the FTX crisis that drove the ADA price to these levels. Cardano whales have also sold 600 million ADA since the start of the year. The positive news is that the ADA price remains above $0.34 despite all the selling. Whales have sold 600 million ADA worth $204 million in 2022 alone.
Cardano has shed 19% since last week in response to FTX’s liquidity crisis and the market crash. It outperformed its competitors in the top 30, given Dogecoin’s 29%, XRP’s 26% and Solana’s 60% depreciation. It broke the previous critical support at $0.38 before falling to $0.30 today.
Technical analyst John Isige says the rally will be short-lived
Cardano price deepened to $0.30 after the bulls lost the $0.38 support on November 10. It is currently trading around $0.34 with a weak rally accompanied by new buyers. Analyst John Isige says the price rally will be short-lived given the risk-free market sentiment.
Cardano shows signs of capitulation similar to Covid era
Signs of surrender similar to March 2020 are emerging, which we judge Cardano on the Realized P/L indicator. The net realized profit/loss metric shows the overall size of the profit or loss made by selling traders. The last time an altcoin moves, it is evaluated by price. Major capitulation events usually occur in two waves, with the second wave being shorter than the first. The first wave attracts investors who want to make quick profits before the second wave.
Twitter’s RektCapital says that for a positive trend, Cardano price should close the week above $0.36. Otherwise, Cardano price will have to retest $0.33 as support.
RektCapital recommends watching if the $0.33 level weakens as support before making a move on Cardano. As you follow on Kriptokoin.com, Cardano announced on November 3 that it can create smart contracts using the Cardano Babbage v5.0.0 application, as a development that can support the technical view. Thanks to this integration, smart contracts can now use Vasil’s upgraded Plutus script. The app is now available for download on Ledger Live.
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