Dormant ADA Whales Move, Bearish Signal for Cardano
There are indications that Cardano (ADA) may be turning bearish again as large investors have started moving their holdings. This was revealed by on-chain data tracker Santiment, which detected unusual activity in previously inactive ADA wallets after the price crossed the $0.3 mark. Dormant ADA Whales Move, Bearish Signal for Cardano.
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Cardano Sharks And Whale Start Moving Coins
According to a report posted on X (formerly known as Twitter) by an on-chain data tracker, there has been significant activity among Cardano shark and whale addresses. These addresses hold between 100,000 and 10 million ADA on their balances, and old coins are also involved in this activity. However, this activity could potentially harm the current ADA recovery as large holders have been transferring previously dormant coins. The report from Santiment indicates that old ADA coins are being circulated again.
According to a tracker, the cryptocurrency has recently experienced a significant increase in the movement of old coins, marking its largest day to date. The last time this metric reached such a high level was in April 2022, and historical performance suggests that this may not be a positive sign.
What Happened To ADA Price Last Time?
In April 2022, the circulation of a significant number of old coins had a negative impact on the price of ADA. The price of ADA had a strong finish in March 2022, reaching $1.21. However, the movement of these coins resulted in a decline in price.
By the end of April 2022, the price of ADA had dropped to $0.8, representing a 33% decrease. This downward trend continued throughout the year, with the price of ADA falling as low as $0.24 by December 2022.
If history were to repeat itself, a further 30% drop in price would bring ADA below $0.1 in the upcoming month, returning it to September 2020 levels. However, there is some positive news for ADA, as indicated by the buying activity of Cardano sharks and whales.
According to a report by Sentiment, Cardano sharks and whales have been rapidly acquiring ADA. In just two weeks, they purchased a total of 43.71 million ADA, which is now valued at over $131 million at the current price. This suggests that bearish sentiment is limited, as large addresses continue to accumulate coins.
At this pace, any coins being sold by dormant wallets on the open market will likely be bought up by sharks and whales. As long as demand matches supply, the sell-off is expected to have a minimal impact on the price of ADA.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.