Cardano’s ADA has experienced a surge in volume, indicating a significant price movement on the horizon. With prices declining, experts speculate that retailers are selling off their ADA holdings. Recent data reveals that Cardano’s volume has skyrocketed from 234 million to 453 million between January 22nd and 23rd, coinciding with a drop in price for the altcoin.
These developments have prompted experts to warn of a potential immediate recovery or a further plunge in ADA prices. Currently, ADA is trading at $0.4714, showing a marginal positive change of less than 2%. This slight increase may be the first step in reversing its downward trend after losing approximately 10% over the past week.
If the bearish trend persists, ADA risks losing its position in the top ten cryptocurrencies. At present, ADA holds the 9th spot with a market cap of just over $16.5 billion. Avalanche, ranked 10th, has been gaining attention in recent months and has seen an 8% increase in the past 24 hours, pushing its market cap to $11.4 billion.
A positive sign for ADA holders is the flow of ADA tokens. Whale transactions, indicating large-volume trades, have increased, suggesting that the high volume of ADA is simply a result of tokens changing hands. Interestingly, these tokens are moving from retail investors to whales.
According to IntoTheBlock, the daily volume of large transactions has reached 27.59 billion ADA, up from 26.9 billion ADA previously. This indicates that Cardano whales have been actively purchasing ADA, leading to an increase in the number of large transactions.
Historically, whales have had the ability to influence the success or failure of a digital asset. When whales buy, they create a demand that drives up prices and attracts retail investors. Conversely, when they sell, they create selling pressure that drives down prices.
Despite recent price struggles, Cardano remains popular among developers. The proof-of-stake (PoS) blockchain network has emerged as a leader in monthly development activities, surpassing its major counterparts in GitHub Commits. This robust development engagement demonstrates Cardano’s strong community and positive technicals.
However, ADA’s fate is still tied to large-cap coins like Bitcoin. In recent days, Bitcoin has lost its bullish momentum, dropping from a monthly high of $49,000 to below $40,000. This has resulted in a broader bearish trend in the crypto market, impacting promising tokens like Cardano.
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