TL;DR

Cardano whales dumped a substantial amount of ADA, which may negatively impact the price. Still, analysts on X remain optimistic, eyeing upside targets between $0.92 and $1.80. Adding to the bullish case, persistent negative exchange netflows suggest reduced sell pressure and keep hopes for a rally alive.

Booking Profits

Over the past two weeks, Cardanos native token has experienced a resurgence, with its price briefly touching $0.90. According to the popular X user Ali Martinez, large investors (known as whales) used the opportunity to make some profits by offloading 140 million ADA during that period.

The USD equivalent of the sold stash is over $120 million. Following that move, the total holdings of the whales (those possessing between one million and ten million coins) has shrunk to 5.46 billion ADA, or less than 15% of the assets circulating supply.

Such efforts are usually interpreted as a bearish factor for the price. After all, they lead to an increased amount of tokens on the open market, which could result in a correction if demand picks up the pace. 

Furthermore, the whales selling spree may hamper the optimism across smaller players and prompt them to cash out, too.

The Potential for Additional Gains

Even as whales unload millions of ADA tokens, crypto X is still buzzing with analysts confident that the asset is gearing up for a rally in the near future. Earlier this week, Martinez assumed that the valuation may reach $0.92 once it confirms a bullish breakout of $0.84.

X user Clifton Fx spotted a bullish flag formation on ADAs price pattern and predicted this could lead to a pump to as high as $1.80.

Cryptoinsightuk also chipped in. The analyst said they currently have no exposure to ADA but the chart looks like its ready to pop, similar to DOGE. Recall that the biggest meme coin has surged by 16% over the past week following the major developments on the ETF front. 

Meanwhile, ADAs exchange netflow has been predominantly negative in the last several months. This signals that investors continue to shift from centralized platforms toward self-custody methods, which in turn reduces the immediate selling pressure.

ADA Exchange Netflow, Source: CoinGlass