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.
Source: Trading View
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.
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