The Cardano blockchain’s native token, ADA, is facing challenges amidst ongoing market volatility. Recent developments regarding Cardano’s token unlock have raised concerns among traders and investors, heightening fears of a possible price decline.
Cardano (ADA) Token Unlock Scheduled
On December 24, 2024, Tokenomist, a leading crypto insights provider, shared on X (formerly Twitter) that Cardano is set to unlock 18.53 million ADA tokens, valued at approximately $16.37 million, on December 26, 2024. This significant token unlock represents 0.05% of Cardano’s total circulating supply. With this event, Cardano will have unlocked 85.44% of its maximum ADA supply, raising questions about its potential impact on the market.
ADA Current Price and Potential Impact
Historically, token unlocks can lead to increased inflows into exchanges, triggering selling pressure and potential price declines. For ADA, analysts and market experts predict a possible price drop in the near future. Currently, ADA is trading around $0.93, marking an 8% surge in the past 24 hours. However, despite this price increase, its trading volume has decreased by 5%, indicating that traders and investors remain cautious about a potential downturn. This apprehension might explain the reduced market participation.
Cardano (ADA) Technical Analysis and Upcoming Levels
Technical analysis reveals that ADA has been in a consolidation phase, trading within a narrow range of $0.86 to $0.97 over the past five days. A breakout from this consolidation zone could signal the next significant price movement for ADA.
If ADA manages to break above the $0.98 level and sustain a daily close, it could potentially rally by 25%, aiming for the $1.25 mark. Conversely, if ADA falls below the $0.85 support level and closes there, it may decline by 12%, targeting the next support at $0.75.
Overall, the sentiment within the cryptocurrency market appears to be gradually recovering after recent notable price drops. Investors and traders are closely monitoring these developments to gauge Cardano’s future price trajectory and market dynamics.
