Cardano Whales Sell 1.02 Billion ADA, More Pain Ahead?
08 Setembro 2023 - 11:00AM
NEWSBTC
On-chain data shows the Cardano whales have sold more than a
billion ADA during the past week, a sign that pain may not be over
for the asset yet. Cardano Whales Have Participated In Some
Distribution Recently Cardano didn’t have the best time in August,
as the cryptocurrency registered a more than 18% drop. This new
month of September hasn’t been any better for ADA, as the asset has
only continued to struggle sideways around its lows so far. At
present, the asset is trading just under the $0.26 level. The chart
below displays the recent price action in the cryptocurrency. Looks
like ADA hasn't moved much since the start of the month | Source:
ADAUSD on TradingView Cardano’s flat returns over the past week
aren’t anything different from what has been happening in the wider
sector, as Bitcoin (BTC) and Ethereum (ETH) have also been
similarly stale recently. Related Reading: Bitcoin MVRV At Critical
Support Line, Will Retest Be Successful? That said, a bearish
signal exclusive to the asset appears to have emerged, as Ali, an
analyst on X, has pointed out in a new post. According to on-chain
data, the ADA whales have participated in a selloff over the past
week. The value of the metric seems to have been heading down in
recent days | Source: @ali_charts on X The above chart shows the
trend in the combined supply of the Cardano investors holding at
least 10 million and at most 100 million ADA in their wallets. At
the current exchange rate, this range converts to about $2.6
million at the lower end and $26 million at the upper bound. The
holders of this vast amount of the token are called “whales.” Due
to their massive holdings, they are among the most influential
entities on the network. The graph shows that these large investors
have seen their holdings go down sharply recently. This ADA holder
group has distributed a net amount of 1.02 billion ADA (worth
around $260 million) in this latest selloff, which is a pretty
significant figure. Related Reading: Bitcoin Could Decline Further
Before A Rebound, Here’s Why The whales shaving off their supply is
naturally not a positive sign for the cryptocurrency, as it
suggests that some of these humongous holders don’t think the asset
will recover shortly, so they are cutting their losses and exiting
the coin. ADA Continues To Be 7th Largest Coin In Sector Despite
its decline, Cardano is still the seventh-largest asset in the
cryptocurrency sector in terms of market cap, as the table below
shows. The market cap of the asset is around $9 billion at the
moment | Source: CoinMarketCap However, the gap between ADA and the
8th place Dogecoin (DOGE) is down to less than $100 million now,
meaning that the asset is at risk of dropping down from its spot.
Unless things change fast for Cardano, it may be inevitable that
the cryptocurrency would slip below the memecoin shortly, given the
bearish movement from the whales. Featured image from iStock.com,
charts from TradingView.com, Santiment.net
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