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Cardano (ADA) Price Remains at Crossroads as Whale Activity Drops

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VOC, Voice of Crypto, Cardano

Key Insights

  • Cardano is one of the top performers today
  • According to the market data aggregation platform, the whales appear to be offloading Cardano.
  • At the same time, Santiment notes that Cardano is a popular coin amongst its enthusiasts.

Cardano is in the news again. The FTX-Alameda insolvency saga has begun to cool off along with the rest of the market. Most cryptocurrencies are starting to normalize, and the global crypto market cap is slowly beginning to climb again to its $1 trillion mark.

According to data from CoinMarketCap, the global crypto market cap sits at $873.7 billion after falling to $786 billion earlier in the week.

However, over the last few hours, and as far as cryptocurrencies are concerned, ADA has been one of the top performers.

Over the last 24 hours, the cryptocurrency rose by 9% to a high of $0.3766 before normalizing to the $0.363 zone where it now sits.

Tokenomics on Cardano, VOC, Voice of crypto

Tokenomics on Cardano | Source: Tradingview

Whales Offload Cardano (ADA)

According to the market data aggregation platform, the whales appear to be offloading Cardano.

Since May, these whales have sold off as many as 600 million ADA and are actively trading any change in direction.

Chart showing dips on the Balance of Addresses Holding between 100k-10M ADA (whale accounts), VOC, Voice of crypto

Chart showing dips on the Balance of Addresses Holding between 100k-10M ADA (whale accounts) | Source: Santiment

According to values provided by the Network Realized Profit/Loss divided by actual price, a certain degree of capitulation occurred in 2020 during the covid-19 crash. However, these capitulation events happened in two waves, with the second smaller than the first.

This indicates that traders jumped in, in a bid to make some quick profits on the bounce before losing everything on the second wave in a few days or weeks.

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Chart showing the Network Realized Profit/Loss divided by actual price, VOC, Voice of crypto

Chart showing the Network Realized Profit/Loss divided by actual price | Source: Santiment

At the same time, Santiment notes that Cardano is a popular coin amongst its enthusiasts. Moreover, according to the cryptocurrency’s social volumes, there are no indifferent or negative sentiments towards the cryptocurrency, as illustrated below.

Chart showing the social volumes on Cardano, VOC, Voice of crypto

Chart showing the social volumes on Cardano | Source: Santiment

Cardano (ADA) Price Analysis 

Compared to the rest of the market, Cardano recovered fairly quickly after the panic selling that swept through the market in the wake of the FTX-Alameda showdown.

Over the last week, Cardano only fell by 14%, which is a step up compared to others like Solana and BIT, which more than halved.

Chart showing the price action of Cardano, VOC, Voice of crypto

Chart showing the price action of Cardano | Source: Tradingview

The daily chart shows that the price of ADA sharply reversed after hitting the oversold mark. This indicates strength from the bulls.

The RSI-based moving average has normalized and is now at the neutral zone. A crossover between this line and the RSI signal line appears to be on the verge of forming, indicating that the bulls are starting to take control and may push the price of the cryptocurrency higher.

Cardano is currently testing the $0.37 zone and may break this line to the upside, depending on how hard the bulls can push.

If Cardano rises beyond this line, it is expected to rally straight ahead to the $0.5 zone in a 35% move to the upside.

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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