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Cardano Bearish Signal: Dormant ADA Whales Are On The Move

Cardano (ADA) may be turning bearish once more after whales began moving again. This activity was brought to light by the on-chain data tracker Santiment which showed unusual activity in dormant ADA wallets after the price crossed $0.3.

Cardano Sharks And Whale Start Moving Coins

In the report that was posted on X (formerly Twitter) by the on-chain data tracker, Cardano shark and whale addresses (that is addresses holding between 100,000 and 10 million ADA on their balances), as well as old coins, have been showing a lot of activity.

Most of this activity could be detrimental to the current ADA recovery given that these large holders have been moving their previously dormant coins. The Santiment report shows that old ADA coins are moving back into circulation once more.

Cardano ADA whales

It showed that the crypto just marked its largest day of old coins being moved around. The last time that this metric was this high, as pointed out by the tracker, was back in April 2022, and historical performance does not spell good news following this.

Cardano (ADA) price chart from Tradingview.com

What Happened To ADA Price Last Time?

Back in April 2022 when a similar volume of old coins began moving back into circulation, it spelled doom for the ADA price. Looking at the chart in 2022 shows that ADA had finished out the month of March strong at a price of $1.21. However, once these coins began moving, it was game over.

April 2022 saw the ADA price fall from $1.21 to $0.8 before the month was over, meaning a 33% drop in price. The downtrend would carry on into the later part of the year and by December 2022, the ADA price had fallen as low as $0.24.

If this were to repeat itself, then another 30% drop would send the ADA price below $0.1 in the coming month. This would take the price back to September 2020 levels. However, it is not all bad news for the digital asset given the activity of sharks and whales.

In the same report, Sentiment revealed that Cardano sharks and whales have been buying up ADA rapidly. They had bought a total of 43.71 million ADA in the space of two weeks, now worth more than $131 million at the current price. This suggests bearish sentiment is limited given that large addresses are still accumulating coins.

At this rate, whatever is being dumped on the open market by the dormant wallets will be picked up by the sharks and whales. As long as demand continues to match supply, then the sell-off could have next to a negligible effect on the price of ADA.

Posted on

Cardano Bearish Signal: Dormant ADA Whales Are On The Move

Cardano (ADA) may be turning bearish once more after whales began moving again. This activity was brought to light by the on-chain data tracker Santiment which showed unusual activity in dormant ADA wallets after the price crossed $0.3.

Cardano Sharks And Whale Start Moving Coins

In the report that was posted on X (formerly Twitter) by the on-chain data tracker, Cardano shark and whale addresses (that is addresses holding between 100,000 and 10 million ADA on their balances), as well as old coins, have been showing a lot of activity.

Most of this activity could be detrimental to the current ADA recovery given that these large holders have been moving their previously dormant coins. The Santiment report shows that old ADA coins are moving back into circulation once more.

Cardano ADA whales

It showed that the crypto just marked its largest day of old coins being moved around. The last time that this metric was this high, as pointed out by the tracker, was back in April 2022, and historical performance does not spell good news following this.

Cardano (ADA) price chart from Tradingview.com

What Happened To ADA Price Last Time?

Back in April 2022 when a similar volume of old coins began moving back into circulation, it spelled doom for the ADA price. Looking at the chart in 2022 shows that ADA had finished out the month of March strong at a price of $1.21. However, once these coins began moving, it was game over.

April 2022 saw the ADA price fall from $1.21 to $0.8 before the month was over, meaning a 33% drop in price. The downtrend would carry on into the later part of the year and by December 2022, the ADA price had fallen as low as $0.24.

If this were to repeat itself, then another 30% drop would send the ADA price below $0.1 in the coming month. This would take the price back to September 2020 levels. However, it is not all bad news for the digital asset given the activity of sharks and whales.

In the same report, Sentiment revealed that Cardano sharks and whales have been buying up ADA rapidly. They had bought a total of 43.71 million ADA in the space of two weeks, now worth more than $131 million at the current price. This suggests bearish sentiment is limited given that large addresses are still accumulating coins.

At this rate, whatever is being dumped on the open market by the dormant wallets will be picked up by the sharks and whales. As long as demand continues to match supply, then the sell-off could have next to a negligible effect on the price of ADA.

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Cardano (ADA) Next In Line For A Rally Following Shark And Whale Buying Spree

Cardano (ADA) has not exactly been the best performer in the last month. Instead, the altcoin’s price has continued to stall even during periods of market recovery.

However, this trend could change pretty soon given the current accumulation trend among sharks and whales, something that could take a significant chunk of available supply off the open market and trigger another rally.

Cardano Sharks And Whales Go To Market

In a Tuesday post, the on-chain data aggregator platform Santiment revealed an interesting development concerning the ADA sharks and whales. The sharks and whales in this instance refer to wallets holding at least 100,000 ADA and at most 10 million ADA.

What Santiment has found is that this 100,000-10 million cohort has been consistently adding to their balances. The accumulation first began a little over two months ago on May 21, and since then, they have collectively bought over $116.1 million worth of ADA.

Cardano (ADA)

This buying spree also saw their trading volume rise significantly during this time as well. As the on-chain tracker revealed, the sharks and whales saw their cumulative volume cross 67 billion ADA toward the end of July.

As a result of their consistent buying, sharks and whales now account for 34.4% of the total circulating ADA supply. The last time that their holdings were this high was back in 2022, before the FTX collapse. Additionally, their cumulative trading volume is now sitting at its highest level since September 2021.

Will ADA Respond Positively?

In the last two months in which the Cardano sharks and whales have been active, ADA has seen some encouraging price action. In July, its price jumped from below $0.3 to a local high of $0.37. But ultimately, the altcoin corrected back downward, losing a little over 20% of its value.

Since then, the digital asset has continuously struggled to maintain $0.29, with bears having more good days compared to bulls. However, there could be a change in the horizon given that investor sentiment seems to have skewed in favor of buying instead of selling.

What this means is that the mounting buying pressure could quickly see the price of ADA recover as demand grows. So it may not be long before ADA is retesting the $0.35 resistance again. And if this rally happens to coincide with a recovery in the price of Bitcoin (BTC), then it could beat its recent local peak of $0.37 and rally above $0.4.

For this to happen, though, the bulls would have to maintain control and the 6% jump in the altcoin’s daily trading volume in the last day could be evidence of this.

At the time of writing, ADA is trailing at $0.2991, up 2.93% on the daily chart. However, the asset is seeing 2.33% losses on the weekly chart.

Cardano (ADA) price chart from Tradingview.com