Here’s Why The Cardano Price Is Struggling Below $0.7
March 27 2024 - 1:00PM
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A plausible explanation has emerged for why the Cardano (ADA) price
has dropped below the psychological price level of $0.7. The crypto
token saw a sharp correction from its monthly peak of $0.8,
recorded on March 14, and has since failed to recover such a
height. Cardano Whales Responsible For Price Decline Data
from the crypto analytics platform Santiment shows that the whale
transaction count ($100,000 and above) on the network has reduced
since March 14. That period was when Cardano hit a high of $0.8,
which suggests that ADA whales began to take profits from then and
have slowly exited their positions since then. Related
Reading: Bitcoin Held On Coinbase Exchange Reach 9-Year Low, Can
Bitcoin Reach $75,000? Crypto whales are known to have a massive
impact on the market, and prices usually drop as soon as these
traders begin to offload their holdings. Moreover, this wave of
profit-taking isn’t peculiar only to the ADA ecosystem; these past
few weeks have been marred by investors taking profits from
different crypto tokens in which they were invested. The
flagship crypto, Bitcoin, was also not spared. Investors decided to
take profits after weeks of seeing BTC make a parabolic run on its
way to a new all-time high (ATH) of $73,750. Meanwhile, long-term
ADA holders also looked to have used the opportunity to take some
profits, as data from Santiment shows that a considerable amount of
dormant ADA tokens were also transacted during that period.
Specifically, March 20 was a busy day for these long-term holders
as 200 million ADA tokens (which had been dormant for a year) moved
on that day. Time For ADA To Run To $1 Like the broader
crypto market, Cardano looks to be recovering from this recent wave
of profit-taking, although at a slower pace. For its next leg up,
there is the belief that the crypto token could finally break the
$1 resistance. Crypto analyst Dan Gambardello recently predicted
that ADA could rise to between $1.4 and $1.5 if it can break out
from the $0.8 price range. Related Reading: Ripple CEO
Responds To SEC’s Shocking $2 Billion Demand ADA whales are likely
to soon return to the fold with whale transctions higher than
$100,00 expected to pick up soon enough. A spike in these
trasaction count would suggest that these investors are taking
advantage of ADA’s current decline to accumulate more of the crypto
token. That is something that could contribute to a rise in ADA’s
price depending on how bullish these investors are on ADA going
forward. At the time of writing, ADA is trading at around
$0.6513, down almost 4% in the last 24 hours according to data from
CoinMarketCap. ADA price struggles below $0.7 | Source:
ADAUSDT on Tradingview.com Featured image from The news Crypto,
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