Cardano Bearish Signal: Dormant ADA Whales Are On The Move
October 31 2023 - 7:00PM
NEWSBTC
Cardano (ADA) may be turning bearish once more after whales began
moving again. This activity was brought to light by the on-chain
data tracker Santiment which showed unusual activity in dormant ADA
wallets after the price crossed $0.3. Cardano Sharks And Whale
Start Moving Coins In the report that was posted on X (formerly
Twitter) by the on-chain data tracker, Cardano shark and whale
addresses (that is addresses holding between 100,000 and 10 million
ADA on their balances), as well as old coins, have been showing a
lot of activity. Related Reading: Shiba Inu Burn Rate Nosedives
Following 7,700% Jump, What Happened? Most of this activity could
be detrimental to the current ADA recovery given that these large
holders have been moving their previously dormant coins. The
Santiment report shows that old ADA coins are moving back into
circulation once more. Source: Santiment on X It showed that the
crypto just marked its largest day of old coins being moved around.
The last time that this metric was this high, as pointed out by the
tracker, was back in April 2022, and historical performance does
not spell good news following this. ADA price loses footing at $3 |
Source: ADAUSD on Tradingview.com What Happened To ADA Price Last
Time? Back in April 2022 when a similar volume of old coins began
moving back into circulation, it spelled doom for the ADA price.
Looking at the chart in 2022 shows that ADA had finished out the
month of March strong at a price of $1.21. However, once these
coins began moving, it was game over. April 2022 saw the ADA price
fall from $1.21 to $0.8 before the month was over, meaning a 33%
drop in price. The downtrend would carry on into the later part of
the year and by December 2022, the ADA price had fallen as low as
$0.24. Related Reading: The End Is Near For Trellor (TRB): Crypto
Analyst Says Prepare For 50% Drop If this were to repeat itself,
then another 30% drop would send the ADA price below $0.1 in the
coming month. This would take the price back to September 2020
levels. However, it is not all bad news for the digital asset given
the activity of sharks and whales. In the same report, Sentiment
revealed that Cardano sharks and whales have been buying up ADA
rapidly. They had bought a total of 43.71 million ADA in the space
of two weeks, now worth more than $131 million at the current
price. This suggests bearish sentiment is limited given that large
addresses are still accumulating coins. At this rate, whatever is
being dumped on the open market by the dormant wallets will be
picked up by the sharks and whales. As long as demand continues to
match supply, then the sell-off could have next to a negligible
effect on the price of ADA. Follow Best Owie on X (formerly
Twitter) for market insights, updates, and the occasional funny
tweet… Featured image from Shutterstock, chart from TradingView.com
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