Cardano News: What’s Next for ADA Price with Dec 6 Token Unlock Looming?
The post Cardano News: What’s Next for ADA Price with Dec 6 Token Unlock Looming? appeared first on Coinpedia Fintech News
Cardano’s 30-day growth rate of 269.5% has grabbed the attention of the entire cryptocurrency community, for the fact that it is the second best-performing among the top ten cryptos after XRP (419.9%). Thanks to Cardano whales. Undoubtedly, the role whales have played in this surge is immense. Meanwhile, some recent reports indicate that Cardano no longer enjoys the favour of whales. What’s next? A fall?
Cardano Whale Activity and Sell-Off
Analysing the whales’ netflow metric is the best way to track the whale activity scenario. Reports say that the netflow index has sharply declined from 63.58 million ADA to 7.62 million ADA. The implication is crystal clear: at least 55.96 million ADA has been sold by the Cardano whale community. It sounds truly alarming, doesn’t it? There must be some strong justifications for this sudden shift in whale sentiment.
December 6 ADA Token Unlock and Implications
The most convincing justification that we can think of at this juncture is the December 6 ADA Token Unlock. Perhaps, the scheduled unlock event has encouraged the Cardano whale community to rebalance their portfolios. Certainly, an 18.53 million token unlock is going to contribute to high volatility in the market, at least for a few days.
Market Indicators Highlight Volatility in Cardano
Interestingly, prominent technical indicators also point to the possibility of volatility. In the scenario of volatility, the Bollinger Band indicator shows increasing bandwidth. It is exactly what we see now in the Cardano chart; a widening bollinger band.
Exactly the same is what the Relative Strength Index conveys. The RSI, which stands currently at 82.44, confirms that the market is currently in the overbought range. A market entering the overbought range naturally triggers the fear of price correction and volatility in traders.
Cardano Price Prediction and Scenarios
Last month was an exceptional period for the Cardano market. Never in recent history has the market shown a monthly performance better than November’s 201%. Defining November’s performance is simple: a steep climb with just one notable correction of 11.44%. This month also, Cadano continues the legacy of November, though the only anomaly was the minor drop of 0.705% reported yesterday. Currently, the ADA price stands at $1.2344.
It does not mean that there is nothing to worry for Cardano. If the current whale trend continues, an upcoming drop is simply inevitable. Experts warn about the possibility of the price declining to as low as $0.92. You have heard it right. A 25.46% correction! Disappointing, isn’t it?
We don’t have to lose hope. Experts also forecast that the exact opposite could be the case, if the Cardano whale community resumes their accumulation. In a bullish scenario, the target could reach as high as $1.33, according to experts. Well. That looks interesting!
