Connect with us
Active Currencies 14880
Market Cap $2,227,052,547,215.50
Bitcoin Share 50.92%
24h Market Cap Change $1.39

Is whale interest in Cardano [ADA] enough to sustain its bull rally?

2min Read
Is whale interest in Cardano [ADA] enough to sustain bull rally?

Share this article

  • Whale activity spiked considerably in the last few weeks. 
  • A few metrics were bullish, but market indicators suggested a price decline.

Santiment’s report on 21 February revealed that Cardano [ADA] was the recipient of increased interest from whales. This was evident from the whale transaction count, which skyrocketed in February 2023. 

Source: Santiment


Is your portfolio green? Check out the Cardano Profit Calculator


Moreover, Cardano’s developers pushed quite a few upgrades for the network, the latest and most notable one being the Valentine upgrade, which was released on 14 February. 

Interestingly, on 21 February, Input Output Global (IOG) posted a thread on Twitter that was aimed at helping newcomers better understand the Cardano network by simplifying several jargons and technical terms.  

Apart from these updates, another reason for the surge could be ADA’s recent price action, which has been in the investors’ favor. As per CoinMarketCap, ADA was up by over 10% in the last seven days, and at the time of writing, it was trading at $0.397 with a market capitalization of over $13.7 billion.

However, the price trend seemed to have changed as ADA’s price registered a decline of over 2% in the last 24 hours. 

These can bring trouble

Despite the recent decline in ADA’s price, it somehow remained in demand in the derivatives market, as its Binance funding rate remained high. ADA’s daily active addresses also registered an increase, which suggested more users in the network. However, ADA’s MVRV Ratio declined, which increased the chances of a continued downtrend.

Moreover, ADA’s development activity went down over the last week, which was yet another point of concern. 

Source: Santiment

Should the investors be worried? 

A look at the ADA’s daily chart gave more reasons to worry, as most of the market indicators revealed that the bears had entered the market. For instance, ADA’s Relative Strength Index (RSI) registered a downtick and was heading towards the neutral mark, which was a development in the sellers’ favor.


How much are 1,10,100 ADAs worth today?


ADA’s Chaikin Money Flow (CMF) also followed the same route and went down. The MACD suggested that the bulls and the bears were in a battle. However, considering the other indicators, it was more likely for the bears to win.

ADA’s Bollinger Bands pointed out that the token’s price was in a less volatile zone, reducing the chances of an unprecedented surge. Nonetheless, the Exponential Moving Average (EMA) Ribbon gave some hope as the 20-day EMA was still above the 55-day EMA. 

Source: TradingView

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.