CandleFocus

Cardano’s 18.53M ADA Unlock Sparks Fear, Price Crash Ahead?

Author: Content Editor
The native token of the Cardano blockchain, ADA, is facing uncertainty in the market, particularly due to concerns over an upcoming token unlock. On December 26, 2024, 18.53 million ADA tokens worth $16.37 million are set to be unlocked. This accounts for 0.05% of Cardano's total circulating supply and brings the unlocked ADA supply to 85.44% of its maximum. Token unlocks typically lead to selling pressure and price declines, leading experts to suggest that ADA may face a price drop in the coming days. Currently trading near $0.93, ADA has seen an 8% price surge in the past 24 hours but a 5% drop in trading volume, indicating cautiousness among traders. ADA's price movement in the coming days, particularly a breakout from its current consolidation zone of $0.86 to $0.97, may determine whether it rallies or declines. If it breaks above $0.98, a rally of 25% to $1.25 is likely, while a breakdown below $0.85 could lead to a 12% decline to the next support level at $0.75. Overall, sentiment in the cryptocurrency landscape is recovering after recent price declines.

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