Cardano’s whale transactions have surged to a six-month high, potentially signaling a bullish catalyst for ADA’s price surge in the near future.
Despite the broader market downturn, Cardano’s native cryptocurrency ADA has faced significant selling pressure, dropping over 11% on the weekly chart. Currently, ADA is trading slightly down by 0.36% at a price of $0.4536, with a market cap of $16.16 billion.
Surge in Cardano Whale Transactions Signals Potential Price Reversal
Recent findings by on-chain data provider Santiment reveal a significant increase in transactions involving large sums of Cardano (ADA) tokens, exceeding $100,000 in value. This surge marks the highest level observed since November 8th.
The notable uptick in Cardano whale activity historically aligns with instances of possible price reversals in ADA’s market trajectory. This trend suggests that increased whale transactions could serve as an indicator of forthcoming changes in ADA’s price dynamics.
Notably, the market capitalization of ADA has witnessed a significant decline, dropping by 43% since March 13th. This decline underscores a period of substantial volatility and market adjustments for the cryptocurrency, highlighting the challenges and uncertainties facing ADA in recent times.
Courtesy: Santiment
Cardano (ADA) Price Analysis and Market Trends
Last week, the Cardano (ADA) price experienced a significant loss of its major support level at $0.50, dropping to $0.45, which now serves as a critical support zone for the altcoin. A decisive decline below this level could potentially stimulate additional bearish momentum, with the next significant support anticipated at $0.4280.
On the other hand, ADA’s immediate resistance levels are identified at $0.4920, followed by the psychological threshold of $0.500. A breakthrough above this level might trigger a rally, potentially propelling ADA towards $0.5250, and even up to $0.5650 in the event of prevailing bullish sentiment.
Despite the broader market’s bearish trend, ADA has not been immune, experiencing a decline in global market cap, reflecting its subdued Year-to-Date (YTD) performance with a -23.69% contraction. Santiment’s data indicates a marginal decrease in active ADA wallets over the past three months, contrasting with signs of market recovery. This anomaly may imply either an undervaluation of ADA or a decline in interest among investors and users.
📊 The total amount of non-empty #Bitcoin wallets are rapidly growing despite choppy prices. #Altcoin wallets for assets like #Dogecoin have flattened after enormous rises earlier this year. #Cardano is one of the few networks to see active wallets drop. https://t.co/itg9qMes7c pic.twitter.com/yrOlEQw3jy
— Santiment (@santimentfeed) April 27, 2024
Data sourced from Santiment reveals a slight decrease of 0.13% in the total number of active Cardano (ADA) wallets over the past three months. This trend distinguishes ADA as one of the few networks witnessing a reduction in wallet activity during this timeframe.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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