Since May 2022, the Ethereum-killing altcoin has seen 600 million ADA tokens traded by Cardano whales and significant wallet investors. According to an on-chain indicator, Cardano showed signals of surrender, like the Covid meltdown in March 2020.
What analysts are predicting
Analysts predict that the price of Cardano will decline to gather liquidity. The price of Cardano recovered after falling during this week's crypto meltdown brought on the FTX. The smart contract platform's token just touched a low of $0.34, and experts anticipate a closing above $0.38.
Sale of 600 million ADA tokens by Cardano whales
Despite pressure from huge wallet investors to sell, the Cardano price (1) has remained above $0.34. Since May 2022, whales have sold 600 million ADA tokens for $204 million. The massacre in cryptocurrency and the liquidity problem at FTX caused the Ethereum-killing altcoin to plunge 11% over the previous week. In the FTX-induced crypto bear market, Cardano performed better than most other altcoins among the top 30 cryptocurrencies by market capitalization. The price of Cardano today broke through resistance at $0.38 before falling to $0.30.
Cardano exhibits capitulation symptoms akin to the Covid collapse
It is clear from looking at the Network Realized Profit/Loss split by Actual Price indicator that Cardano is displaying capitulation symptoms like to those seen in March 2020. The total amount of profit or loss that all holders of the asset have realized is shown by the net realized profit/loss indicator. It is evaluated about the cost at the time a coin last moved. Two waves often make up large capitulation occurrences, with the second wave being shorter than the first.
What Traders are hoping for
Traders hoping to lock in profits before the second wave are drawn to the first wave. Cardano price would need to conclude the week over $0.36, according to RektCapital (2), a pseudonymous cryptocurrency analyst and trader, for a relief rally to continue. If not, the $0.33 mark probably functions as a support for the price of Cardano. Cardano is now trading at $0.34, with bulls unanimously pushing for closing above crucial support at $0.38. Given the risk-off market environment, John Isige, a technical analyst at Crypto News, thinks the price surge for Cardano could be fleeting.