Cardano (ADA) Approaches 30-Day Low as Large Holders Depart Positions
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Cardano's price has experienced a notable drop of nearly 10% over the past week, mirroring the broader downturn in the cryptocurrency market. The reason behind ADA's decline can be primarily attributed to a significant decrease in whale activity.

As selling pressure mounts, Cardano is heading towards hitting a 30-day low. Here's a closer look at the reasons behind this development:

Large holders of Cardano, also known as whales, have significantly reduced their buying activity. Data from IntoTheBlock reveals that Cardano's whale addresses have seen a drastic 90% decrease in netflow over the last seven days. These large holders, who own more than 0.1% of the circulating supply of the asset, play a crucial role in influencing the market.

The decline in whale netflow indicates a trend of these significant holders selling off substantial portions of their ADA assets. This heightened selling activity leads to an increase in the coin's supply, consequently putting downward pressure on its price. Moreover, this reduced confidence among ADA retail traders could further exacerbate the situation, prompting them to follow suit and sell their holdings or refrain from purchasing more, anticipating further price declines.

Adding to the selling sentiment, on-chain data from Cardano's Network Realized Profit/Loss (NPL) suggests a broader market trend of profit-taking. As shown by Santiment, ADA's NPL has recently turned positive, indicating that holders are capitalizing on selling their holdings at a profit.

The NPL metric reflects the difference between the price at which the asset was last traded and the current market price, indicating the profit or loss realized by investors. A positive NPL signifies that more investors are selling at a profit, potentially flooding the market with increased supply and thereby causing a price decrease if demand fails to match the selling pressure.

In light of these developments, ADA's Relative Strength Index (RSI) on the daily chart highlights a surge in selling activity, standing below the 50-center line at 45.49. Although ADA is not yet oversold, the decreasing RSI suggests mounting selling pressure, potentially leading to further price declines.

If the current downward trend persists, Cardano's price could potentially drop to $0.82, marking a 30-day low. However, a reversal in market sentiment towards increased coin accumulation could negate this bearish outlook, pushing the altcoin's price back above $1.

It's essential for investors and traders to closely monitor these market dynamics to navigate the evolving landscape of Cardano and the broader cryptocurrency market. Stay informed and stay vigilant amidst the fluctuations to make informed decisions in this dynamic market environment.

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