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Cardano ($ADA) has been facing a prolonged period of lackluster price action. The altcoin’s price continues to struggle, as investor support dwindles and the cryptocurrency fails to recover.
Now, the question is: will $ADA drop by another 31%?
Hoskinson Supports GENIUS Act
Charles Hoskinson has recently rallied for the approval of the GENIUS Act, backing former President Trump’s remarks on banks threatening the act. Hoskinson expressed his agreement with Trump, which could signal the support that $ADA needs to bounce back.
“I agree with the President. The banks amended the bill 137 times. They have to stop messing with it and trying to shut down the industry,” Hoskinson stated.
However, investor sentiment remains weak, with whales leading the selling pressure. Over the past week, approximately 210 million $ADA, worth over $56.7 million, were sold off. As the whales continue to exit, the market sentiment remains largely negative, further compounding $ADA’s struggles.
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This growing bearish sentiment among investors, particularly large holders, highlights the challenges $ADA faces in maintaining any substantial recovery. Despite Hoskinson’s advocacy, $ADA’s price remains under pressure, and the confidence of investors continues to wane.
Cardano STHs Have The Say
The macro momentum for Cardano is also less than favorable. The MVRV Long/Short Difference, which measures the profitability of long-term holders (LTHs) versus short-term holders (STHs), has remained deep in the negative zone.
This signals that STHs, who dominate the market, are in profit, while LTHs are struggling. The lack of a sharp recovery and low buying interest has allowed short-term holders to control the market. These investors tend to sell at the first sign of profits, further exacerbating $ADA’s price struggles.
As the selling pressure from STHs increases, $ADA faces heightened volatility. The lack of sustained buying from long-term investors means Cardano may struggle to see any meaningful price recovery in the short term.
$ADA Price Decline Ahead
Cardano’s price is currently at $0.27, sitting just below the $0.28 resistance level. The altcoin has formed a bearish flag pattern, signaling a potential 31.75% drop to the $0.17 support level. If $ADA fails to break above the resistance and instead continues to fall, it could face significant losses.
The negative market sentiment, combined with the current price action, suggests that a drop below the $0.25 support level would trigger further bearish momentum. A loss of the $0.22 support would validate the bearish flag pattern, with $ADA potentially falling to $0.19, exposing the cryptocurrency to the $0.17 level.
However, if Cardano gains social support or if macro conditions improve, there is a possibility that $ADA could bounce off the $0.25 support and rise to $0.31. Breaching the $0.31 level would invalidate the bearish thesis and potentially signal a reversal toward higher levels for the altcoin.
The post Cardano Risks a 31% Drop as Whales Dump 210 Million $ADA appeared first on BeInCrypto.
