TL;DR
- One popular analyst claimed that ADA whales haven’t bought the dip. Instead, they have sold almost $250 million worth of the asset.
- Contrary to the recent crash, analysts predict a reversal to over $1, with factors like a potential Ripple-Cardano partnership and regulatory efforts boosting optimism.
Another Correction on the Horizon?
The cryptocurrency market decline witnessed at the start of the business week has been ravaging for numerous well-known altcoins.
Cardano’s ADA was among the worst affected, with its price plummeting from over $0.90 to as low as $0.60. In the past several hours, it rebounded to the current $0.75 (per CoinGecko’s data), representing a 21% plunge on a weekly scale.
According to one crucial factor, ADA might be on the verge of another substantial correction. The popular X user Ali Martinez recently revealed that whales have sold over 330 million tokens (worth almost $250 million) and haven’t bought the dip yet.
A massive sell-off coming from large investors floods the market with excess supply, potentially outpacing demand and creating a downward pressure on the valuation.
Additionally, the whales’ actions might trigger panic selling among smaller players, which is another bearish element for the price.
It is worth mentioning that accumulating a substantial amount of ADA by large investors may have the opposite effect. As CryptoPotato reported, whales purchased over 130 million tokens towards the end of November when the price was hovering around $1. A few days later, ADA soared to a nearly two-year high of $1.30.
The Optimistic Scenario
Despite the latest pullback, some analysts see chances of a revival in the short term. The X user BullishBanter envisioned “a sweep of the lows around $0.75 before a reversal targeting the $0.95 – $1.10 range.”
One factor that may positively impact ADA’s price is the potential collaboration between Ripple and Cardano. As CryptoPotato reported, the bosses of the entities have been actively discussing the possible integration of the stablecoin RLUSD.
Additionally, Charles Hoskinson (Cardano’s founder) revealed his intentions to work alongside Trump’s administration to create a comprehensive and potentially more favorable regulatory environment for the cryptocurrency sector.
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