Are Cardano Whales Dumping ADA Due to Charles Hoskinson’s Latest Proposal?

TL;DR

• Cardano whales have changed their behavior toward the asset by starting to dispose of massive ADA quantities.
• The asset’s price experienced some notable volatility as of late, not just because of the ongoing geopolitical tension but also due to Hoskinson’s latest proposal.

Whales Sell

BitcoinLinux reported at the start of the business week that large ADA holders, those with investments of somewhere between 100 million and a billion tokens, have continued to accumulate. In the span of just 48 hours, they expanded their holdings by 120 million ADA.

However, they seem to have changed their attitude once again since then. Renowned crypto analyst Ali Martinez informed that these large entities have disposed of more than 270 million ADA in just a week. In terms of USD value, this stash is worth over $170 million.

https://twitter.com/ali_charts/status/1933488225013936261?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank” rel=”nofollow noopener

Such big sell-offs increase the selling pressure of the underlying asset and are typically followed by smaller investors doing the same. ADA’s price felt the consequences in the past few days as it plunged from $0.71 to under $0.62 before it recovered some ground to the current $0.636.

Some analysts warned that ADA could drop further to around $0.5 if it doesn’t invalidate a head and shoulders pattern that it’s currently breaking down.

While the most evident reason behind this price crash could be related to the escalating geopolitical tension between Iran, Israel, and the US, there’s another possibility that involves more internal changes.

ADA for BTC?

Charles Hoskinson, the brain behind the Cardano ecosystem, proposed earlier this week that the treasury should exchange $100 million worth of ADA for BTC and stablecoins to enhance the network’s DeFi capabilities. The responses were mixed, with some praising the move, while others warned that it could increase the selling pressure on ADA even more.

However, Hoskinson was quick to refute these rumors, indicating that there’s enough OTC demand from institutions for ADA to cover any potential pressure.

“The belief that Cardano DeFi is improving will offset the sale volume of ADA from a modest divestment (and yes, this is modest.)”

https://twitter.com/IOHK_Charles/status/1933563756908310816?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank” rel=”nofollow noopener

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