Cardano Whales Exit Market Amid Steady Declining Prices

Updated:

Cardano (ADA) continues to drag along as its woes appear to have no end in sight. Since the rally in March, analysts expected the altcoin to attract some new investors in the second quarter of 2022, however, this has not been forthcoming. Instead, the altcoin has lost almost 30%, erasing most of the gains made in March.

While the market did not expect the recent turn of events, it appears that some ADA whales anticipated it. Reports show that whales had begun offloading and staying away from the market before the March consolidation. By April 5, when the slump started, whale activity on the network had halved in volume.

While the price reversal was not a direct result of the recent whale activity, their exit from the market did not help market conditions at all. Over the past few weeks, over 1.2 million ADA holders have seen their holdings go into losses.

Retail investors subsequently pulled away from the market following the recent pullback, causing the number of active on-chain investors to drop by a whopping 80% from 101,000 to 21,000.

Regardless, the latest on-chain data suggests that the investors have taken the drop recorded over the last 24 hours as an opening to buy ADA at a discount.

Key Cardano Levels to Watch — April 18

Cardano has refreshed its monthly low on Monday after slipping below the $0.900 psychological support to touch the $0.875 low. While ADA has regained its place above the $0.900 line, the possibility of a bearish continuation over the coming hours and days remains potent.

Studio Project 66
ADAUSD – Daily Chart on Binance. Source: TradingView.

However, the eighth-largest cryptocurrency has dragged along in oversold conditions for some days now, promoting the likelihood of a bullish correction soon. That said, a move and close above the critical $1 mark could dispel bears and help ADA push for the $1.100 level, where the top of my long-lasting descending channel rests.

Meanwhile, our resistance levels are $1.000, $1.050, and $1.100, and our support levels are $0.850, $0.800, and $0.700.

Total Market Capitalization: $1.82 trillion

Cardano Market Capitalization: $30.3 billion

Cardano Dominance: 1.66%

Market Rank: #8

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.