1. Large Whale Selling: Large investors (whales) sold over 270 million ADA tokens last week, causing a sharp drop in price to $0.61 on June 5.
2. Recent Recovery: The price of ADA recovered and rose by 3.1% daily to reach $0.645 on June 15, with daily trading volume increasing by 25.7% to $471.9 million, indicating increased market activity.
3. ETF Expectations: One of the main factors behind this recovery is the growing expectations regarding the possibility of approval for an exchange-traded fund (ETF) for Cardano, as Bloomberg analysts raised the approval odds to 75%, increasing investor optimism.
4. Growth of the Cardano Ecosystem: There are over 2004 active projects running on Cardano's smart contract network, demonstrating independent development and active participation from developers and users.
5. Broader Market Support: Broader market gains helped boost sentiment in the altcoin sector, as Bitcoin's price rose by 1.9% to $107,131, laying the groundwork for a parallel recovery of ADA.
Conclusion:
Despite the large sell-offs by whales, the price of Cardano (ADA) managed to recover due to optimism surrounding potential ETFs and strong growth in the project ecosystem. As fundamental conditions continue to improve and the broader market supports, ADA could maintain its upward momentum if these factors persist.