Cardano’s 18.53M ADA Crack Open Fears, Price Crash Ahead?
ADA, the parent of the Cardano blockchain, seems to be struggling amid the ongoing market turmoil. Adding to the concerns, the latest update regarding the launch of the Cardano token has raised fears of a potential price drop among traders and investors.
Cardano (ADA) token launch is scheduled
Today, December 24, 2024, crypto insights provider Tokenomst, posted on X (formerly Twitter) revealed that the Cardano blockchain is set to launch 18.53 million ADA tokens worth $16.37 million on December 26, 2024.
The report further states that this significant token accounts for 0.05% of Cardano's total distributed supply. At the recent token launch, Cardano opens the maximum ADA supply at 85.44%.
ADA's current value and potential impact
According to the data, every time a project launches its own tokens, it typically creates a flow to exchanges, which leads to sales pressure and subsequent price drops. In the case of ADA, experts and analysts suggest that the token may experience a price drop in the coming days.
At press time, ADA is trading at around $0.93 and has experienced a price increase of over 8% in the last 24 hours. However, during the same period, trading volume decreased by 5%, suggesting that traders and investors are still concerned about the possibility of price reductions, which may explain the low participation.
Cardano (ADA) technical analysis and upcoming level
According to professional technical analysis, ADA has been consolidating in a tight range of $0.86 to $0.97 over the past five trading days. Separation from this consolidation zone may determine whether ADA will rally or decline in the future.
Based on recent price action, if the ADA breaks out of the consolidation zone and the daily candle closes above the $0.98 mark, there is a high probability of a 25% rally to reach the $1.25 mark. Conversely, if the ADA breaks below the consolidation zone and the daily candle closes below $0.85, it may decline by 12% to reach the next support level at $0.75.
As it stands, sentiment in the cryptocurrency landscape seems to be recovering after a significant price drop in recent days.
