Cardano Whales Sell Ahead of Token Unlock, Volatility Looms

Cardano (ADA) has seen significant activity from large investors recently, as whales sold off millions of tokens ahead of a scheduled token unlock expected to increase market volatility. These major holders offloaded nearly 56 million ADA, equivalent to tens of millions of dollars, likely to secure profits or adjust their holdings.

The upcoming token unlock, scheduled for this week, will release a substantial amount of ADA into circulation. This event could impact the balance of supply and demand, introducing price fluctuations in the near term. Historically, token unlocks tend to influence market trends, often creating uncertainty for investors.

Technical indicators suggest that Cardano may be overbought. Bollinger Bands, which measure price volatility, show expanded ranges, signaling increased fluctuations. The upper bands indicate ADA is trading at levels associated with overbought conditions. Similarly, the Relative Strength Index (RSI), which gauges market momentum, confirms this. With RSI readings above the threshold for overbought assets, Cardano appears poised for a price correction.

If selling pressure continues, ADA could see further declines. However, the scenario could change if whales resume accumulating tokens. Renewed interest from large holders might help stabilize prices or even spark a recovery.

Investors are keeping a close eye on the market, as the token unlock could mark a turning point for ADA’s recent performance. While caution prevails, potential buying opportunities may arise if the market adjusts to new supply levels.