Amid the broader market sell-off, Cardano’s native cryptocurrency ADA has also been facing strong selling pressure correcting over 11% on the weekly chart. As of press time, the Cardano (ADA) price is trading 0.36% down at a price of $0.4536 and a market cap of $16.16 billion.

Cardano Whale Transactions Explode

According to recent findings by on-chain data provider Santiment, transactions involving large sums of Cardano (ADA) tokens, surpassing $100,000 in value, have surged to their highest level since November 8th.

This notable uptick in Cardano whale activity has historically coincided with instances of possible price reversals in ADA’s market trajectory. Notably, the market capitalization of ADA has experienced a significant decline, plummeting by 43% since March 13th, indicating a period of substantial volatility and market adjustments for the cryptocurrency.

Courtesy: Santiment

ADA Price Action Ahead

Last week, the Cardano (ADA) price lost its major support at $0.50 levels slipping all the way to $0.45, which is the critical support zone for the altcoin. Should ADA’s price experienced a decisive decline below its current level, it could potentially stimulate additional bearish momentum, with the next significant support anticipated at $0.4280.

Conversely, ADA’s immediate resistance is identified at $0.4920, followed by the psychological threshold of $0.500. A conclusive breakthrough above this level might instigate 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 hasn’t been immune, experiencing a decline in global market cap, mirroring 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.

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.

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

The post Cardano Whale Transactions Explode Hinting At ADA Price Reversal In Short Term appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am