With ADA whales driving the network with a staggering $13 billion in big transactions, the Cardano network is undergoing a kind of awakening. This is noteworthy, especially when compared to Ethereum’s average of $5 billion over the course of seven days for transactions of a comparable magnitude.
Taking into account Ethereum’s transaction volume and Cardano’s market capitalization, the numbers are startling and suggest a big change in the way big investors in the Cardano ecosystem behave.
This surge in whale activity hasn’t had much of an impact on Cardano’s price performance. The price of ADA has been losing steam in recent weeks and has broken through important support levels.
https://x.com/intotheblock/status/1747915671583731726?s=20
The 50-day EMA, a crucial indicator that frequently acts as a barometer for short- to medium-term market sentiment, has been broken by ADA, most notably. Losing this support is a negative indication that frequently leads to more drops or, at the very least, a consolidation phase.
The 100 EMA is ADA’s next line of defence, and it might act as a buffer against additional declines. But, given that volume is also declining, the support provided by the 100 EMA might not be as strong as bulls would have hoped. When prices are declining and there is a declining volume, it can be seen as an indication that buyers are not interested in purchasing at the current prices, indicating that the market may be ready for more declines.
There are concerns over the fundamental mechanisms at work given the contradiction between the substantial transaction volumes and the negative pricing action observed by ADA. Do the whales acquire ADA in order to take long-term strategic positions, or do these deals fall into a larger scheme of redistribution or profit-taking? We still don’t know the answers to these queries.
