Cardano (ADA) Faces Bearish Signals as Whales Stir – History Indicates Potential Price Plunge
- Cardano’s on-chain data indicates increased activity among whales and sharks after a rise past $0.3, potentially hinting at a bearish trend.
- Large holders moving dormant ADA coins back into circulation historically resulted in significant price drops.
Cardano (ADA) is experiencing a significant stir in the cryptocurrency market as data from on-chain analytics provider Santiment reveals increased activity among whales and sharks, particularly after surpassing the $0.3 mark.
The latest report from Santiment highlights the movement of Cardano shark and whale addresses, ranging from 100,000 to 10 million ADA, along with previously dormant coins, displaying considerable activity. The resurgence of these large holders moving dormant ADA coins back into circulation could potentially signal a bearish trend for ADA’s current recovery.
This heightened activity, as observed by the on-chain data tracker, marks the most significant movement of old ADA coins to date. A similar surge in the movement of old coins was last witnessed in April 2022, a period that historically led to a downward spiral in ADA’s price.
Past Trends Signal Potential Price Plunge
Examining the past, a comparable scenario in April 2022 triggered a 33% price drop in ADA, from $1.21 to $0.8, resulting in a continued downtrend that saw ADA’s value plummeting to as low as $0.24 by December 2022.
While the current on-chain data suggests a potential 30% drop in the ADA price to levels below $0.1, there’s a silver lining in the ongoing accumulation of ADA by the whales and sharks. These large holders have swiftly bought 43.71 million ADA within two weeks, equating to over $131 million at the current market value, indicating a counterbalance to the bearish trend.
The accumulation by sharks and whales may counteract the potential negative impact on ADA’s price by absorbing what’s being offloaded by dormant wallets. If this trend continues, the selling pressure may be mitigated, maintaining a balance between supply and demand, thereby limiting the adverse effects on ADA’s price.
