Cardano price suffers decline with rising whale activity, ADA holders remain optimistic

Cardano, one of the largest competitors of the Ethereum network and a Layer 1 blockchain network, suffered a pullback after posting 12% weekly gains. There are two bullish catalysts that are likely to fuel a recovery in ADA price, first is the Cardano Summit where protocols on the ADA chain compete, and second is partner chains.

On-chain activity on the ADA blockchain reveals whales have come out of their slumber, engaging in likely profit taking activities in the altcoin.

Also read: Bitcoin price spikes in response to US Nonfarm Payrolls for October

Daily market movers: Cardano Summit triggers spike in whale activity, founder reveals plan for partner chains 

• Cardano Summit 2023, a special competition for all early-stage startups in the ADA ecosystem where protocols compete for prizes, went live on November 2. 
• The summit brought several ADA-based protocols under one roof and acted as a bullish catalyst for ADA holders’ sentiment. 
• Based on data from crypto intelligence tracker, Santiment, whale transactions valued at $1 million and higher noted a spike in November. In the first four days of the month, these large volume transactions hit a count of 3,213. 
• The number is higher than whale transactions noted throughout the month of October 2023. This makes it a significant development in on-chain activity. 
• Typically, higher count of whale transactions are bullish or bearish depending on the price trend of the asset. A total of 3,213 whale transactions exceeding $1 million were accompanied by a price decline in ADA. 

ADA whale transaction count (>$1 million) vs price

• ADA price noted a 2% correction in the past 24 hours, this implies whales are likely engaging in profit taking and further volatility is likely.
• Cardano founder Charles Hoskinson, introduced a new framework of partner chains. 
• In an IOG blog, partner chains are defined as networks that build their own computation layer while leveraging Cardano Settlement Layer for value exchange. 
• Hoskinson believes that partner chains have the potential to revolutionize the ADA blockchain ecosystem. 

Cardano price: ADA price eyes $0.3408 target

Cardano price is currently in an uptrend that started on October 20. ADA price rallied 30% between October 20 and November 4. The Layer 1 token suffered a correction in response to rising whale activity, however the asset is poised for a recovery and eyes the $0.3408 target, the 50% Fibonacci retracement of the decline from the April 15 top of $0.4607 to June 10 bottom of $0.2214.

ADA/USDT one-day price chart on Binance

In the event of further decline in Cardano price, the 38.2% Fibonacci Retracement level at $0.2773 could act as support for the altcoin.