Cardano Price In Turmoil: Can Whales Drive ADA’s Resurrection From Recent Dump?
April 06 2024 - 3:00AM
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The Cardano price has been facing a significant amount of bearish
pressure over the past week, declining by more than 12%. This
recent fall coincides with a broader crypto market downturn, with
other major altcoins suffering huge losses over the past week.
Specifically, Cardano’s price decline has been largely linked to
the recent sell-off of all ADA holdings by the Grayscale Digital
Large Cap Fund (GDLC). On Thursday, April 4, the fund disclosed its
decision to rebalance its portfolio by liquidating its Cardano
assets (about 1.6% of the entire holdings). Registering such a
negative start to April after an underwhelming performance in March
doesn’t do well to dispel the increasing concerns of investors.
Moreover, the latest on-chain data suggests that the Cardano price
might continue to succumb to the bearish pressure. Analyst Predicts
ADA Price Slump As Whale Activity Slows Down Popular crypto pundit
Ali Martinez has shared a post on X that Cardano whales have been
making fewer moves in the market in recent days. This revelation is
based on Santiment’s Whale Transaction Count metric, which tracks
the number of ADA transactions worth more than $1 million. Related
Reading: Bitcoin Short-Term Holders Go On 1.2 Million BTC Buying
Spree, Is Retail Finally Here? Whales refer to entities or
individuals that own significant amounts of a particular
cryptocurrency (Cardano, in this case). They are often viewed as
key players in the market, as their buying or selling activities
can have a significant impact on the Cardano price, leading to
speculation and potential market shifts. According to Martinez, the
on-chain data shows that there has been a noticeable dip in the
activity of Cardano whales, suggesting a possible decline in
significant ADA transactions. In an almost vertical move, the whale
transaction count dropped from around 400 daily transactions at the
beginning of last week to 200 daily transactions by Friday, April
5. Chart showing ADA whale transaction count, whale holdings, and
price | Source: Ali_charts/X The crypto analyst mentioned that the
recent downturn in whale activity could be a signal for “further
price consolidation” or an imminent decline in the Cardano price. A
loss of substantial buying activity from large investors can cause
the cryptocurrency to succumb to bearish pressure, especially from
small traders looking to take some profit. Indeed, the Cardano
token has made a positive start to the year, reaching a high of
$0.8 in early March. However, the altcoin has been on a downward
trend since hitting the 2024 peak – collapsing under the pressure
of Bitcoin’s price decline. Cardano Price At A Glance As of this
writing, the Cardano price stands at around $0.577, reflecting a 1%
decline in the past 24 hours. Related Reading: Solana Primed For
Takeoff? Expert Analysis Points To Buying Opportunity Cardano price
hovers around $0.58 on the daily timeframe | Source: ADAUSDT chart
on TradingView Featured image from iStock, chart from TradingView
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