Investors Ditch Cardano, Will This Lead to a Huge Drop in ADA Price?
The fresh market plunge was ignited by the rounds of the FTX exchange being hacked and stealing millions of assets worth nearly $400 million. Cardano‘s (ADA) price, which was heading towards the pivotal levels at around $037 from the new lows at around $0.312, faced yet another rejection, compelling it to drop below $0.35.
Additionally, the popular altcoin appears to have been ditched by the Whales and large investors with the recent market crunch. According to the on-chain analytical platform, Santiment, the number of whales has been constantly dropping since October 2022 as the Weighed Sentiment for Cardano remind heavily negative throughout the month.
Additionally, the daily active address which indicates the user’s activity also witnessed a steep decline in the past couple of days. This indicates that the market participants have distanced themselves from the asset moderately.
In the past few days, the crypto space has been experiencing extreme wreath due to the collapse of the FTX exchange which was considered one of the biggest crypto exchanges. Meanwhile, Cardano was not listed on the platform which appears to have saved the token to be hacked along with the other popular cryptos.
However, considering the ongoing market trend and the exit of whales, the ADA price is speculated to reach the $0.30 zone again. In the short term, Cardano is offering a good opportunity to short ADA as the asset is trading within a bearish descending triangle. The asset is bearish in all the time frames and does not display the possibility of ranging above $0.58 at any time in the near future.Source