The price of Cardano (ADA) is hovering in an important area as the cryptocurrency market struggles to rise against Bitcoin’s selling pressure. Meanwhile, the ETHs seized in the PlusToken scandal have been transferred to central exchanges and will likely be sold. Can Cardano (ADA), one of Ethereum’s major competitors, survive $1.3 billion in sales?
The Importance of PlusToken’s 1.3 Billion ETH
At the beginning of August, the remains of ETH seized from the PlusToken scandal became active on the chain for the first time since 2021. In the last 24 hours, exchanges took approximately 7,000 ETH ($1.3 billion) of the remaining 542,000 ETH, signaling the intention to sell the remaining tokens.
It is known that the PlusToken scheme raised 830,000 ETH ($1.984 billion) by its closure. While this Ether remained largely untouched until the summer of 2021, about a third of it was sent to the unrecognized Bidesk exchange and possibly sold.
Correlation Between Cardano and Ethereum
In the last 24 hours, 15,700 ETH moved from last known addresses and 7,000 ETH were sent to Binance, Bitget and OKX exchanges. It is likely that additional exchange deposit addresses will become active over time. A drop in Ethereum price may impact the performance and stability of DeFi platforms and dApps.
Possible Scenarios of Cardano Price
If ETH price drops to $1,950, ADA price could drop by 30.24% to around $0.23. On the other hand, if the ETH sell-off does not occur, ADA could rebound from its current level to the uptrend line at $0.45, up approximately 23.56%.
Cardano price is at a critical point between a potential 23% profit and a 30% loss. China’s next step could determine the fate of the ADA price.
These calculations do not take into account other market influencing factors such as investor sentiment and general market trends should be taken into account.
As a result, PlusToken’s ETH sales could significantly impact the price of Cardano. It will be important for investors to follow market movements closely.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
