Cardano Whales Withdraw $47M, But Retail Investors Are Buying
The Cardano price has remained stagnant between the $0.24 and $0.28 range since the crypto market crash in August. However, recent on-chain data trends reveal an interesting dynamic between Cardano whales and retail investors.
Following Grayscale’s victory over the SEC, which failed to trigger a sustained market rally, Cardano whales began selling off a significant portion of their holdings. From August 29 to September 13, the number of ADA coins held by whales decreased by 190 million.
On the other hand, retail investors increased their ADA balances by 30 million coins during the same period. This resulted in cumulative capital inflows of about $7.5 million for retail investors.
Strategic Traders Have Piled Up Orders to Buy More ADA
Despite the downward pressure from whales, Cardano bulls have not given up. Data from exchange order books shows that Cardano bulls have placed orders to purchase 327 million ADA, while bears only have 238 million ADA for sale.
The volume of active orders placed by Cardano traders across various exchanges suggests that bears are running out of steam. In fact, there is currently a market demand for ADA that exceeds supply by 89 million tokens.
ADA Price Prediction: The Bulls Could Hold the $0.25 Support
From an on-chain perspective, Cardano bulls have enough strength to hold the $0.25 support level despite bearish pressure from whales. The In/Out of Money Around Price (IOMAP) data confirms this, showing that $0.24 is a significant line of defense for ADA’s price.
If strategic traders activate their buy orders as predicted, Cardano’s price is likely to hold firm at the $0.25 support. However, if bears conduct another large sell-off, they could overpower retail investors and push the price down towards $0.10.
If the bulls receive a significant boost, ADA could increase towards the $0.35 range. However, there is major resistance from addresses holding 5.4 billion ADA bought at the minimum price of $0.28.
Hot Take: Cardano’s Battle Between Whales and Retail Investors
The battle between Cardano whales and retail investors continues as the price of ADA remains stagnant. While whales have been selling off their holdings, retail investors have been increasing their balances, resulting in capital inflows. The current data from exchange order books suggests that bears are running out of steam, with market demand for ADA exceeding supply. From an on-chain perspective, Cardano bulls have enough strength to hold the $0.25 support level despite bearish pressure. However, if bears conduct another sell-off, they could overpower retail investors and push the price down further. If bulls receive a significant boost, ADA could reclaim the $0.35 range.
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