ADA’s price could potentially drop to $0.42 due to decreasing volatility and significant sell-offs. The recent analysis by AMBCrypto indicates that large holders of Cardano (ADA) have been selling off their tokens, leading to a decrease in the balance of addresses holding 1 million to 10 million ADA. Similarly, the group holding 100 million to 1 billion tokens has also been selling since June 1st, signaling a lack of confidence in the token.
The current price of ADA stands at $0.46, showing a 4.65% increase in the past week. However, if the trend of large players selling off their tokens continues, the price increase could be halted. AMBCrypto’s examination of ADA’s volatility revealed a decrease in one-day volatility compared to June 5th, which could suppress the price if buying pressure decreases.
In case of a rise in sell-offs, ADA could consolidate between $0.44 and $0.46, with a potential drop to $0.42 if the trend continues. Liquidation levels between $0.46 and $0.47 suggest that ADA’s price could move within that range in the short term. However, the Cumulative Liquidation Levels Delta (CLLD) indicates a risk of further decline, with a positive reading suggesting more long liquidations.
Overall, ADA’s CLLD is currently positive, indicating a potential slip below $0.45 as the token may have reached a local top. This situation could lead to a bearish bias for ADA in the near future.