- The 5th of June saw a dramatic increase in ADA’s activity.
- The price of altcoins briefly increased.
Cardano [ADA] According to Reuters, the 5th of June saw an increase in whale activity that led to a short-lived surge in price. Santiment’s data.
On that particular day, according to the data provided by the blockchain provider, there were 309 ADA transactions with a value above $1,000,000. It was the highest number of transactions for ADA in a single day since 30th April.
ADA reported 2106 transactions totaling more than $100k on the same date. Santiment data showed that ADA transactions above $100k had more than doubled in the last week compared with the average of 2024.
Santiment
ADA bears dominate the market
During the period of trading, ADA’s price briefly rose due to the surge in whale activity. Santiment reports that ADA finished the day trading at $0.46.
According to CoinMarketCap The coin’s value has dropped since then. At the time of publication, it was trading at $0.45.
The key indicators of ADA’s momentum showed that its selling pressure was greater than any positive bias towards it. At the time this article was written, for example, its Relative Strength Index and Money Flow Index were both 48.32.
The indicators suggest that the participants on the market would rather sell their coins than acquire new ones.
Further, ADA’s decreasing Chaikin Money Flow confirmed an increase in the selling pressure. It was trending downward at press time and positioned just below zero, at -0.07.
The indicator shows how much money is flowing into or out of the market for a coin. If its value falls, this is an indication of a market in decline, since it indicates capital flight out of the asset’s market.
Although the whales have succeeded in triggering a temporary rally in ADA’s price, bears still exert greater influence.
The altcoin’s Directional Movement Index showed that its positive index (green), which is below the negative index, was reading.
These lines indicate that the bear power is greater than bull strength in the stock market.
TradingView: ADA/USDT
ADA traders are still bullish despite the small chance of a significant spike in price. The funding rate of the coin on all cryptocurrency exchanges is positive.
Coinglass
Click Here to Read Cardano’s [ADA] Price Prediction 2023-24
Permanent futures contracts use funding rates to maintain the contract’s price close to its spot value.
A positive futures-funding rate for an asset is considered a bullish sign. The positive futures funding rate indicates that more traders want to hold long positions because they expect the asset’s price to rise.
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Source: ambcrypto.com
