Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Cardano Whales Shed $69 Million ADA Ahead of This Week’s Token Unlock 

Cardano Whales Shed $69 Million ADA Ahead of This Week’s Token Unlock 

BeInCryptoBeInCrypto2024/12/03 22:44
By:Victor Olanrewaju

Cardano whales offloaded $69M ADA ahead of December’s token unlock, causing volatility. Could ADA dip to $0.92, or rebound to $1.33?

Cardano (ADA) whales, who have been instrumental in driving the cryptocurrency’s price by 270% in the last 30 days, have now sold a bunch of tokens. This sell-off comes ahead of this week’s token unlock, which market participants expect will cause volatility. 

As of this writing, ADA trades at $1.23. Will this sell-off draw the price down further?

Cardano Key Holders Offload Some Tokens

On Monday, December 2, Cardano’s large holders’ netflow reached 63.58 million ADA, reflecting a strong buying trend among whales. The netflow metric tracks the difference between tokens bought and sold by these key players. A rising netflow indicates accumulation, while a decline indicates selling pressure.

As of now, the netflow has plunged to 7.62 million ADA, according to IntoTheBlock, suggesting that whales offloaded 55.96 million ADA — either to take profits or rebalance their portfolios. At Cardano’s current price, this sell-off amounts to a staggering $69 million.

From BeInCrypto’s observation, the recent sell-off may be tied to the upcoming token unlock on December 6. 

Cardano Whales Shed $69 Million ADA Ahead of This Week’s Token Unlock  image 0Cardano Large Holders Netflow. Source: IntoTheBlock

Token unlocks, which release previously restricted tokens into circulation, often drive significant price movements by altering supply and demand dynamics.

According to Tokenomist (formerly Token Unlocks), Cardano is set to release 18.53 million ADA on that date, valued at $22.79 million. This anticipated supply shock could introduce volatility, potentially hindering the altcoin’s ability to sustain an uptrend during this period.

Cardano Whales Shed $69 Million ADA Ahead of This Week’s Token Unlock  image 1Cardano Token Unlock.Source: Tokenomist

ADA Price Prediction: Overbought, Retracement Likely

On the daily chart, Cardano’s Bollinger Bands (BB) have widened, indicating heightened volatility. The BB also highlights whether an asset is overbought or oversold.

When the price touches the upper band, it signals an overbought condition, while contact with the lower band indicates oversold territory. Therefore, the image below confirms the thesis that ADA is overbought.

The Relative Strength Index (RSI), which measures momentum, also aligns with the bias. When the RSI reading is above 70.00, it is overbought. On the other hand, when the reading is below 30.00, it is oversold.

Cardano Whales Shed $69 Million ADA Ahead of This Week’s Token Unlock  image 2Cardano Daily Analysis. Source: TradingView

At press time, Cardano’s RSI stands at 82.15, firmly placing ADA in overbought territory. Given this condition, a price correction to $0.92 could be next. However, if Cardano whales resume accumulation, the trend could shift, potentially pushing the price above $1.33

6

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Interview with VanEck Investment Manager: From an Institutional Perspective, Should You Buy BTC Now?

The support levels near $78,000 and $70,000 present a good entry opportunity.

深潮2025/11/28 07:23
Interview with VanEck Investment Manager: From an Institutional Perspective, Should You Buy BTC Now?

Macroeconomic Report: How Trump, the Federal Reserve, and Trade Sparked the Biggest Market Volatility in History

The deliberate devaluation of the US dollar, combined with extreme cross-border imbalances and excessive valuations, is brewing a volatility event.

深潮2025/11/28 07:22
Macroeconomic Report: How Trump, the Federal Reserve, and Trade Sparked the Biggest Market Volatility in History

Vitalik donated 256 ETH to two chat apps you've never heard of—what exactly is he betting on?

He made it clear: neither of these two applications is perfect, and there is still a long way to go to achieve true user experience and security.

深潮2025/11/28 07:22
Vitalik donated 256 ETH to two chat apps you've never heard of—what exactly is he betting on?

Prediction Market Supercycle

金色财经2025/11/28 07:15
Prediction Market Supercycle