Cardano Whales Selling Off ADA as Price Declines
As the crypto market experiences a small rally, the price of ADA has been moving in sync with other cryptocurrencies. However, the positive price action may be threatened by Cardano whales who are selling off their substantial holdings. Recent data shows that the balances of large ADA whales have continued to decline.
Drop in Cardano Whale Balances
The wallets holding between 1 million and 10 million ADA have seen a significant drop in balances over the past month. This decline has occurred as the price of ADA fell, but with each small recovery, these whales take advantage of the market to sell at a profit.
Data from IntoTheBlock confirms the decline in holdings of these large holders. Toward the end of September, addresses holding between 1 million and 10 million ADA held a total of 5.63 billion tokens. However, by October 15, their total balance had dropped to 5.41 billion, representing a decrease of 220 million tokens.
Larger Whales Increasing Their Balances
While the smaller cohort of whales was selling off their ADA, larger whales holding between 10 million and 100 million ADA were increasing their balances. Their holdings went from 11.81 billion ADA to 12.26 billion ADA by the end of September, with a slight reversal before settling at 12.16 billion tokens in August.
This suggests that there has been a transfer of over 300 million ADA to these larger whales, increasing their dominance in the market.
ADA Holders Facing Losses
Unlike other top cryptocurrencies, ADA has performed poorly during this bear market. Only around 6% of almost 4.5 million ADA holders are seeing profit, while a staggering 91.76% of addresses are in losses. A small percentage of addresses, 2.06%, are breaking even.
ADA is currently trading at $0.25, representing a significant drop of 91.84% from its all-time high price of $3.10. Despite this, it remains the 8th-largest cryptocurrency with a market cap of $8.88 billion.
Hot Take: Cardano Whales Influence ADA Price
As the price of ADA fluctuates, the actions of Cardano whales play a crucial role in determining its trajectory. The recent decline in the balances of large ADA holders indicates that these whales may be selling off their holdings, potentially impacting the positive price action.
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