In the crypto market, the actions of large investors, known as whales, always draw attention. Recently, Cardano faced significant movements. After the Chang hard fork, these whales sold $326 million in Cardano. This sell-off pressured Cardano’s price and postponed the anticipated market breakout.

Key Insight: Cardano Faces Overvaluation Issues

Cardano’s overvaluation has sparked negative market sentiment. The Network Value to Transaction (NVT) ratio is a crucial metric that assesses a cryptocurrency’s value relative to its transaction volume. ADA’s NVT ratio reached an annual high of 6.43, often indicating potential corrections or delays in price increases.

The lack of investor response to this overvaluation adds to Cardano’s challenges. Notably, large holders with between $100,000 and $1 million in ADA have sold around 15% of their assets in the past ten days. This trend aligns with a “sell the news” strategy that emerged after the Chang hard fork. Typically, excitement before major events leads to selling and price declines once the event occurs.

Read Also: Cardano Chang Hard Fork: A New Era of Community Governance 

ADA Coin’s Future Remains Uncertain

The outlook for Cardano is unclear. While recovery is possible in the medium term, market conditions and investor confidence will play critical roles. Cardano has shown volatility for over four months, and breaking this pattern may take time. The price could fall further, potentially reaching $0.31, a previous strong support level.

Cardano’s ongoing challenges emphasize the importance of investor confidence and market dynamics. At the time of writing, ADA is trading at $0.33.

If Cardano can bounce back from this support, a 47% increase in the cryptocurrency market could occur. However, without improvementsn in market conditions and investor sentiment, further price drops are likely. These factors could further delay Cardano’s expected