- ADA whales were committed to holding rather than selling, which has positively impacted recent price action.
- At the same time, both large transaction volumes and overall selling activity had decreased, further supporting a potential recovery.
As a seasoned analyst with years of market experience under my belt, I must say that the recent trend in Cardano [ADA] is quite intriguing. The commitment shown by ADA whales to hold rather than sell has been a game-changer, as it’s not every day you see such long-term dedication in this volatile market.
As a researcher examining the cryptocurrency market, it appears that Cardano (ADA) is poised for potential recovery following its recent setbacks. Over the past week, the token dropped by 3.87%, and on a monthly basis, it dipped by 4.87%.
Over the last day, as whales decided to keep their assets instead of trading them, there’s been a 0.50% increase in its value.
This reinforced the coin’s gradual upward trend.
Whales show long-term commitment to ADA
Based on information from IntoTheBlock, there’s been a significant decrease in the flow of large ADA holders who possess at least one percent of the total ADA supply, as indicated by the Large Holder Netflow.
Large Holder Netflow is a metric that tracks the net inflow or outflow of assets.
Currently, this metric is negative for the altcoin, having dropped by 1181.52% over the past week.
As an analyst, I observed a significant decrease in ADA’s exchange presence, indicating that major stakeholders might be transferring their ADA to personal wallets. This trend seems to point towards a strategic move towards long-term investment and holding.
Engaging in this action could potentially cause a shortage in supply, possibly causing the cost of ADA to rise given its current positive trend, rising significantly during the past 24 hours.
Bullish activity may signal a potential rally
After examining further, AMBCrypto found indications suggesting that the cryptocurrency could be preparing for an upcoming price surge.
One key metric to be noted is the large volume of transactions, which tracks the amount of ADA traded by large holders with significant holdings.
Over the last 24 hours, ADA transactions totaling 18.39 billion have taken place.
This measurement may indicate a positive (bullish) or negative (bearish) outlook, based on whether the trading activity increases or decreases over time.
Additionally, AMBCrypto noted a small decrease in the number of Daily Active Wallets (DAW), although Cardano’s (ADA) price experienced a modest rise.
This, along with the decrease in Large Investor Outflow, implies that market participants are progressively choosing to hold onto their assets rather than sell them.
Building up this pattern might boost the value of ADA, possibly leading to increased trading activity in the forthcoming periods.
Gradual uptick in buying activity
The interest or number of open positions for ADA has slightly increased by 0.28% within the last 24 hours, as reported by Coinglass.
This rise suggests that there’s an uptick in the number of longer-term contracts being initiated and fully financed, which could contribute to a favorable price trend for Cardano (ADA).
Realistic or not, here’s ADA’s market cap in BTC terms
From my perspective as an analyst, while the recent positive signals are encouraging for Cardano’s (ADA) price movement, it’s important to note that the Total Value Locked (TVL) within its ecosystem, as per Defillama, has shown no significant change. This stability suggests a neutral outlook in the broader cryptocurrency market.
In simpler terms, TVL (Total Value Locked) is the overall value of all funds stored within a Decentralized Finance (DeFi) platform. This includes the amount users have put up as stakes, deposits, and investments.
A rise in TVL would likely confirm the bullish trend and reinforce ADA’s upward momentum.
Read More
- ZK PREDICTION. ZK cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- ETH PREDICTION. ETH cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- COMP PREDICTION. COMP cryptocurrency
2024-11-06 09:12