A collective 170 million ADA tokens were unloaded by major Cardano [ADA] investors in recent activity.
The reduction in the ADA holdings of these significant accounts confirmed a sharp decline in wallet balances, dropping from just under 3.26 billion ADA to almost 2.98 billion ADA.
This mass divestment parallelled a significant decline in ADA’s value, plummeting from approximately $0.83 to $0.65 over the same period. This clear correlation indicated that as the holdings diminished over time, so did the price.
This predominantly indicated a pessimistic outlook among prominent holders, potentially forecasting further price drops.
On the other hand, the sell-off might present an opportunity for new or current investors seeking to leverage the reduced price, potentially bringing stability to the market.
This prompted a surge in Google search interest for various assets, with Cardano’s seeing a 90% spike as highlighted by TapTools on X. The heightened public curiosity regarding its investment potential was evident.
In a similar fashion, search volumes for Polkadot [DOT] and Luna Classic [LUNC] doubled, experiencing growth of 110%, indicating increased market attention possibly influenced by recent advancements or price shifts.
Silver also witnessed a significant surge in interest at 100%, as Intel’s “Breakout” noted the sudden peak in searches.
How Might ADA Respond?
An examination of ADA’s price movements, based on Fibonacci retracement levels from the peak and trough of its most recent bull cycle, revealed that ADA was trading around a critical support level at $0.65.
This occurs as the broader altcoin market undergoes an extended correction since mid-January.
A sustained position above this threshold could pave the way for an upward trend towards $1.00, and potentially $3.00, aligning with a long-term resistance near the 0 Fibonacci level at $3.00.
A more optimistic scenario could witness ADA reaching the $7.50 price mark and surpassing it.
Conversely, a drop below $0.65 might trigger a decline towards the $0.30 range, where ADA previously consolidated for an extended period.
This potential downturn could confirm the shift in bearish sentiment within the current market environment.
Notably, the Stochastic RSI indicated that the market conditions may be nearing oversold territory, potentially signaling a recovery if bullish momentum builds up.
In essence, ADA’s short-term trajectory depends on its ability to maintain levels above $0.65.
Breaching $1.00 could signify a bullish trend towards $3.00, while slipping below $0.65 would likely result in a reassessment of fundamental support levels.