Despite Cardano (ADA) whales engaging in a substantial daily average of $13 billion in transactions, ADA’s market value is experiencing a decline.
Key Takeaways
- Cardano (ADA) experiences a surge in whale activity, averaging $13 billion in daily transactions, surpassing Ethereum’s by 160%.
- Despite significant whale engagement, ADA’s price is declining, currently at $0.49 with a 19% drop in the last month.
- ADA’s post-ETF approval rally to $0.61 in January faced a reversal due to a lack of real demand, resulting in a 20% decrease since January 11.
- Momentum indicators, including RSI, MFI, and CMF, suggest a weak market with sell-offs outpacing accumulation, indicating increased liquidity exit.
Cardano’s Whales and Falling Prices
In recent months, Cardano (ADA) has witnessed a notable surge in whale activity, averaging an impressive $13 billion in daily transactions. This figure, as reported by on-chain data provider IntoTheBlock on January 18, far exceeds Ethereum’s daily whale transaction volume, standing at 160% higher with a volume of $5 billion.
Despite this substantial whale engagement, ADA’s market performance tells a different story. Currently valued at $0.49, ADA has experienced a significant downturn, with a 19% decline in the past month and a further 15% drop in the last week, according to data from CoinMarketCap.
Post-ETF Approval Rally and Subsequent Reversal
Following the approval of Bitcoin Spot ETF on January 10, ADA witnessed a market rally, reaching a high of $0.61 on January 11, marking a 21% increase. However, the excitement surrounding the ETF approval quickly diminished, leading to a reversal in ADA’s price, declining by 20% since January 11. This reversal highlighted the absence of sustained demand for the coin.
Read More: Cardano’s Price Predicted to Skyrocket to $0.70: Here’s Why
Weak Market Indicators
Key momentum indicators, including the Relative Strength Index (RSI) and Money Flow Index (MFI), paint a picture of a weak market for ADA. At press time, ADA’s RSI was in a downtrend at 41.11, while its MFI stood at 48.53, indicating that sell-offs are outpacing accumulation.
The Chaikin Money Flow (CMF) for ADA was -0.04, signifying increased liquidity exit from ADA’s spot market. A CMF value below zero is typically associated with market weakness and capital removal, putting downward pressure on the asset’s price.
To Conclude
Cardano’s impressive whale activity, averaging $13 billion in daily transactions, contrasts sharply with the declining market performance of ADA. Despite the surge in whale engagement, ADA’s price is experiencing a notable downturn, with weak market indicators and a negative MVRV ratio signaling investor losses and a lack of sustained demand for the cryptocurrency.
