Cardano price suffers decline with rising whale activity, ADA holders remain optimistic
- Cardano price declined nearly 2% on the day, as whales engage in likely profit taking.
- Whale transactions valued at $1 million and higher increased between November 2 and 4.
- ADA holders remain optimistic on Cardano price recovery, sentiment among traders remains positive.
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.
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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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
