190,000,000 ADA in 1 week: is Cardano on the verge of a further dump?

Another Drop or a Big Rally: What Comes Next for ADA?

While the bulls may be eager to see a decisive near-term rebound, recent moves by major investors indicate that another move south is underway.

Do the whales know something we don’t?

Renowned analyst Ali Martinez revealed that Cardano whales dumped about 190 million ADA in the past week. The USD equivalent of that supply is approximately $50 million (calculated at a current rate of $0.26 per coin).

Seven days ago, the total assets of this cohort of investors stood at 13.57 billion ADA, while they currently own approximately 13.38 billion tokens. This figure represents approximately 36.3% of the asset’s circulating supply.

There is a common assumption in the crypto world that whales are sophisticated investors who may have inside information about important upcoming events that could influence their buying or selling decisions. That said, their recent actions could spread panic across the community and prompt smaller players to cash out as well.

The purely economic impact is also worth mentioning. Big sell-offs increase the amount of ADA on the open market, which, combined with non-increasing demand, should lead to a price drop.

ADA’s Relative Strength Index (RSI) is another bearish factor that investors should pay attention to. The indicator shows whether the asset is overbought or oversold based on the recent price momentum. It ranges from 0 to 100 and helps traders identify when a trend is about to end.

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Values ​​above 70 indicate that the ADA has entered overbought territory and could be on the verge of a correction, while ratios below 30 promote a bullish scenario. At the time of writing, the RSI is around 74.

History repeats itself?

ADA is one of the cryptocurrencies with huge communities, which consist of proponents and bullish analysts. Just a few days ago, X user Aman noted that the asset’s price has fallen to the demand zone of around $0.26, a reminder that this area has led to major reversals in the past.

Mentor shared a similar view, argue that the last time ADA reached current levels, it later rose to almost $1.40 in less than a month. “History will soon repeat itself,” they predicted.

In recent months, ADA’s currency net flows have been mostly negative, reinforcing optimistic forecasts. The trend reflects investors moving coins from centralized platforms to proprietary ones, reducing the chance of short-term sales.