Cardano (ADA) price declines by 2% due to increased whale activity, likely profit-taking. ADA holders remain optimistic about recovery, driven by Cardano Summit and partner chains.
- Cardano (ADA) experiences a 2% decline in price due to increased whale activity.
- Whale transactions worth $1 million or more surged from November 2 to 4.
- ADA holders remain optimistic about a price recovery, driven by the Cardano Summit and partner chains.
- Founder Charles Hoskinson introduces the concept of partner chains, aiming to revolutionize the ADA ecosystem.
Cardano’s price faced a minor setback, dropping nearly 2% in the past 24 hours. This dip was primarily attributed to a surge in whale activity, with transactions involving $1 million or more increasing between November 2 and 4.
Despite this temporary setback, ADA holders continue to hold a positive outlook. Cardano had recently posted a significant 12% weekly gain before this correction. Two promising factors are expected to fuel a recovery in ADA’s price.
— Crypto Chiefs News (@CryptoChiefNews) November 4, 2023
The first is the ongoing Cardano Summit 2023, a competition where early-stage startups in the ADA ecosystem and protocols compete for prizes. This event has united various ADA-based protocols, bolstering the sentiment among ADA holders.
Revealing Spikes In Transaction
Data from crypto intelligence tracker Santiment revealed a noteworthy spike in whale transactions, with over 3,213 such transactions exceeding $1 million within the first four days of November.
This figure surpasses the total whale transactions recorded in the entire month of October. Typically, a higher count of whale transactions can indicate either bullish or bearish sentiment depending on the asset’s price trend. In this case, the surge in whale activity coincided with a price decline in ADA, suggesting profit-taking by whales.
Cardano founder Charles Hoskinson recently introduced the concept of partner chains. These partner chains are described as networks that build their own computation layer while utilizing Cardano’s Settlement Layer for value exchange. Hoskinson envisions that partner chains have the potential to revolutionize the ADA blockchain ecosystem, bringing new opportunities and capabilities to the platform.
While Cardano’s price may have experienced a short-term dip, the overall sentiment among ADA holders remains positive. The ongoing Cardano Summit 2023 and the introduction of partner chains offer exciting prospects for the ADA ecosystem.
The surge in whale activity may indicate profit-taking, but it also signifies growing interest and engagement in the Cardano network. ADA’s uptrend since October 20 is indicative of the potential for a price recovery, with a target set at $0.3408, representing the 50% Fibonacci retracement from previous highs.
The coming weeks will be crucial in determining whether Cardano can capitalize on these bullish catalysts and continue its upward trajectory. ADA enthusiasts will be closely watching how the network evolves with the implementation of partner chains and the outcomes of the Cardano Summit competition.