Cardano’s (ADA) Rollercoaster Ride: Whale Profit-Taking Sends Shockwaves

Estimated read time 2 min read
  • Cardano faces a challenging period as large investors, known as whales, withdraw $380 million in profits, leading to a decline in whale activity and stagnation in ADA price.
  • With whale transactions decreasing since February 29 and on-chain data revealing significant profit-taking, Cardano’s immediate future remains uncertain, although the possibility of a rebound persists if specific price thresholds are breached.

Cardano, one of the prominent players in the cryptocurrency market, finds itself navigating choppy waters as large wallet investors, colloquially known as whales, take significant profits off the table. In the past week, these whales have cashed in nearly $380 million, triggering a downturn in ADA price and raising concerns among investors about a potential correction.

Despite the optimism surrounding Cardano, evidenced by its recent peak of $0.8104 on March 14, the cryptocurrency has failed to maintain its upward trajectory. Instead, it has been trading within a narrow range between the aforementioned peak and a low of $0.5689 recorded on March 20. This stagnation in price, coupled with a decline in whale activity, paints a picture of uncertainty for ADA holders.

On-chain data reveals a notable decrease in whale transactions since February 29, indicating a trend of profit-taking among these significant investors. The Network Realized Profit/Loss metric further underscores this narrative, illustrating that ADA holders have been capitalizing on their investments, collectively amassing substantial profits.

Presently, Cardano’s price hovers around $0.6592 on Binance, exhibiting minimal movement over the past week and reflecting a decline of nearly 19% from its year-to-date peak. Analysts suggest that further correction may be imminent, with the altcoin potentially seeking liquidity in the Fair Value Gap identified between $0.3046 and $0.3736 on the monthly chart.

While a recovery for Cardano remains plausible in the long term, immediate indicators point towards a continuation of bearish sentiment. The Moving Average Convergence/Divergence (MACD) indicator, characterized by red bars below the zero line, signals a predisposition towards downward price movement.

However, there is a glimmer of hope for ADA investors, contingent upon specific price thresholds being breached. A daily candlestick close above $0.7328 or the 78.6% Fibonacci retracement level could invalidate the bearish outlook, potentially propelling Cardano towards its next key resistance at $0.9091.

Cardano’s struggle to regain momentum underscores the pivotal role played by whale investors in shaping cryptocurrency market dynamics. As ADA holders navigate through this period of uncertainty, vigilance and strategic decision-making will be crucial in mitigating risks and capitalizing on potential opportunities.

vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.

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