ADA, the native token of the Cardano blockchain, appears to be struggling amid ongoing market uncertainty. Adding to the concerns, a recent update regarding Cardano’s token unlock has sparked fear among traders and investors about a potential price dip.
Cardano (ADA) Token Unlock Scheduled
Today, December 24, 2024, a crypto insights provider, Tokenomist, posted on X (formerly Twitter) revealing that the Cardano blockchain is set to unlock 18.53 million ADA tokens worth $16.37 million on December 26, 2024.
The report further stated that this substantial token unlocks accounts for 0.05% of Cardano’s total circulating supply. With the recent token unlock, Cardano will have unlocked 85.44% of its maximum ADA supply.
ADA Current Price and Potential Impact
Based on the data, whenever a project unlocks its respective tokens, it typically creates inflows into exchanges, leading to selling pressure and a subsequent price decline. In the case of ADA, experts and analysts suggest that the token might face a price drop in the coming days.
At press time, ADA is trading near $0.93 and has experienced a price surge of over 8% in the past 24 hours. However, during the same period, its trading volume dropped by 5%, suggesting that traders and investors are still apprehensive about a potential price decline, which might explain the lower participation.
Cardano (ADA) Technical Analysis and Upcoming Level
According to expert technical analysis, ADA has been consolidating within a tight range of $0.86 to $0.97 over the past five trading days. The breakout from this consolidation zone could determine whether ADA will rally or decline in the future.
Based on recent price action, if ADA breaks out of the consolidation zone and closes a daily candle above the $0.98 mark, it is highly likely to rally by 25% to reach the $1.25 mark. Conversely, if ADA breaks down from the consolidation zone and closes a daily candle below the $0.85 level, it could decline by 12% to reach the next support level at $0.75.
As of now, the sentiment across the cryptocurrency landscape appears to be recovering after notable price declines in recent days.
