- ADA whales are accumulating coins at a rapid rate.
- It has happened despite the constant drop in altcoins’ value.
Cardano [ADA] Whales continue to accumulate the altcoin, despite a 30% drop in its value over the past month.
Data provider on-chain posted a tweet on X. IntoTheBlock In the previous week, ADA reported a daily average $13.84 Billion in large transactions.
This represents one third of the total population. Bitcoin’s [BTC] Current volume is five times greater than Litecoin’s [LTC] The volume of the coin is sixteen times larger than that of any other meme Dogecoin [DOGE].
Also, Santiment’s The coin’s daily transactions of whales surpassed $100,000 in the 29th April. This day’s transactions totaled 1776, the coin’s highest daily number since 8th Nov 2023.
Source: Santimennt
As per the data provider, “These spikes in whale activity historically correlate with potential price reversals.” Does ADA have a chance to rally short-term?
ADA can extend loss
ADA was trading at $0.45 as of the time of publication. On a chart of its 1-day performance, the coin’s value was below its MAs for 20 and 50 days.
These MAs serve often as support levels. When an asset drops below these levels, this usually indicates a temporary stop in price decline. This is because buyers are stepping in. If the price falls below the MAs and there is a large selling volume then it may confirm a downtrend.
On 1st of April, ADA’s prices trended lower than these MAs. This decline confirmed that the selling pressure on the coin has increased since the previous day.
ADA’s RSI at the time of publication was 35.67, which suggests that the coin will soon be oversold if momentum continues to sell off.
Since the 1st of April when its price fell below MAs, ADA has seen a double-digit drop in price. CoinMarketCap’s data.
The Elder-Ray Index, which confirms the decrease in ADA accumulation at the time of press was also negative. The Elder-Ray Index has been showing only negative values ever since the 15th of March. A few days before, its price had peaked to a record high year-to date at $0.77.
It measures the power of buyers and seller in the marketplace. If its value is low, the bears dominate the market.
Click Here to Read Cardano’s [ADA] Price Prediction 2024-25
The descending triangle has been formed due to the long-term decline of ADA.
If the sentiment shifts, then the price of the coin can rise from $0.45 to $0.49 and possibly even $0.52.
Source: ADA/USDT TradingView
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Source: ambcrypto.com
