Cardano (ADA) whales, who have played a key role in boosting the cryptocurrency’s price by 270% in the past 30 days, have now sold a series of tokens. This sell-off comes just ahead of this week’s token unlock, which the market predicts will cause volatility.
At the moment, ADA is trading at $1.23. Will this sell-off pull prices down further?
Major Cardano Owners Sell Some Tokens
On Monday, December 2, the total cash flow of major holders of Cardano reached 63.58 million ADA, marking a strong buying trend among ‘whales’. The netflow index reflects the difference between the number of Tokens bought and sold by these main entities. Netflow increases indicate accumulation, whereas decreases indicate selling pressure.
According to IntoTheBlock, netflow has now dropped to 7.62 million ADA, suggesting that whales have sold 55.96 million ADA — either to take profits or to rebalance their portfolios. At Cardano’s current price, this sell-off reached a whopping $69 million.
As observed by TinTucBitcoin, the recent sell-off may be related to the upcoming Token unlock on December 6.
Token unlocking, which releases previously restricted Tokens into circulation, often drives large price movements due to changes in supply and demand dynamics.
According to Tokenomist (formerly Token Unlocks), Cardano plans to unlock 18.53 million ADA by that date, worth $22.79 million. This expected supply shock could cause volatility, which could hinder the altcoin’s ability to maintain an uptrend during this time.
ADA Price Prediction: Overbought, Correction Likely
On the daily chart, Cardano’s Bollinger Bands (BB) have widened, pointing to increased volatility. BB also marks 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 an oversold zone. Therefore, the image below strengthens the argument that ADA is overbought.
The Relative Strength Index (RSI), which measures bullish momentum, is also consistent with this bias. When the RSI is above 70.00, it is overbought. Conversely, when below 30.00, it is oversold.
As of press time, Cardano’s RSI stands at 82.15, placing ADA firmly in overbought territory. Under these conditions, a downward price correction to $0.92 is possible. However, if Cardano whales continue to accumulate, the trend could change, pushing the price above $1.33.