Cardano (ADA) Whales Start Moving Coins, Indicating Bearish Trend
According to on-chain data tracker Santiment, there has been unusual activity in dormant ADA wallets after the price of Cardano crossed $0.3. This activity suggests that Cardano may be turning bearish once more.
Cardano Sharks and Whales Show Increased Activity
The report posted on X (formerly Twitter) by Santiment reveals that Cardano shark and whale addresses, as well as old coins, have been showing a lot of activity. This could potentially harm the current ADA recovery as large holders are moving their previously dormant coins. The report also highlights that old ADA coins are moving back into circulation.
This marks the largest day of old coins being moved around since April 2022. Historical performance indicates that this is not good news for ADA.
Past Performance Indicates Potential Price Drop
In 2022, when a similar movement of old coins occurred, the ADA price dropped by 33% from $1.21 to $0.8 within a month. The downtrend continued, and by December 2022, the price had fallen as low as $0.24.
If history were to repeat itself, another 30% drop could bring the ADA price below $0.1 in the coming month, taking it back to September 2020 levels.
Positive Note: Sharks and Whales Accumulate ADA
Despite the potential bearish trend, there is some positive news for Cardano. According to the same Santiment report, Cardano sharks and whales have been buying up ADA rapidly. They acquired a total of 43.71 million ADA in just two weeks, now valued at over $131 million.
This accumulation by large addresses suggests that bearish sentiment may be limited, as demand continues to match supply. As a result, any sell-off from dormant wallets could have a negligible effect on the ADA price.
Hot Take: ADA Faces Potential Bearish Trend Amidst Whale Activity
Recent on-chain data reveals that Cardano (ADA) may be entering a bearish phase. Large holders, known as sharks and whales, have been actively moving their previously dormant ADA coins, indicating potential downward pressure on the price. This trend is reminiscent of a similar movement in 2022 that resulted in a significant price drop for ADA. However, there is also positive news, as these large addresses are accumulating ADA rapidly, suggesting limited bearish sentiment. As long as demand remains strong and matches supply, the impact of the sell-off from dormant wallets may be minimal. It remains to be seen how this activity will ultimately affect the future price of ADA.
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