Gate news, on Friday (June 20) during the European morning session, Cardano (ADA) price rebounded to around $0.6016, temporarily regaining ground lost during the Asian session, but bearish sentiment remains. The $100 million investment plan by Cardano founder Charles Hoskinson has caused uncertainty among ADA whales, leading to the transfer of 230 million ADA in just three days. Technical outlook indicates a surge in bearish momentum, suggesting further declines in the future.
In the podcast with David Gokhshtein, Charles emphasized his plan to increase the supply of stablecoins on the network. He stated, “So my suggestion is, why don’t we take about $100 million worth of ADA, exchange it for stablecoins, put half of it into stablecoins in the mixed pool, which are Cardano’s native stablecoins, and then put the other half into Bitcoin.”
The plan aims to use the profits generated from investments to purchase ADA tokens and donate them to the Cardano treasury. Charles stated that this would enhance the vitality of the treasury, transforming it from an unmanaged single-asset chain system into a managed off-chain treasury with out-of-band governance.
Investors holding between 100 million and 1 billion ADA tokens increased their holdings by a total of 230 million ADA tokens on Monday, bringing the total holdings from 3.17 billion ADA to 3.4 billion, Santiment data showed.
However, in the rapid sell-off on Wednesday, investors sold 230 million ADA.
As of Friday, the total holdings of these large investors have reached 3.18 billion ADA.
It is worth noting that as of June, the holdings of investors holding more than 1 billion ADA have increased by 180 million ADA. The fluctuations in Cardano whale holdings indicate that investor confidence has been shaken.
ADA Price Outlook: Further Decline Expected
FXStreet analyst Vishal Dixit stated that there are five consecutive bearish candlesticks on the daily chart of ADA. After the triangle breakout, ADA once fell below the support level of $0.5946 established on April 16.
If the closing price falls below $0.5946, it may increase the risk of probing the annual low of $0.5110. Investors may witness the ADA downtrend approaching the psychological support level of $0.50.
The Moving Average Convergence Divergence (MACD) has further declined along its signal line into the negative territory, indicating a continued increase in bearish momentum.
The Relative Strength Index (RSI) is 31, close to the oversold area, indicating increased selling pressure.
On the contrary, if ADA stays above $0.5946, off-exchange investors may see Cardano rebound to the weekly opening price of $0.6333.
(Source: FXStreet)
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