Ethereum rival Cardano sharks gobble up 331 million ADA tokens, fuels fear of mass sell-off
- Ethereum rival Cardano witnessed a spike in accumulation of ADA tokens by large wallet investors.
- Cardano addresses holding between 10,000 and 100,000 ADA tokens have added $83 million worth of ADA since November 7.
- Cardano price outlook is bearish in the short term, experts are monitoring ADA for opening shorts before the end of 2022.
Ethereum rival Cardano, leading smart contract network noted an increase in percentage of ADA token supply held by large wallet investors. Shark and whale addresses, holding between 10,000 and 100,000 ADA, scooped up the Ethereum-alternative over the past month. The price outlook on Cardano is bearish for the next week.
Also read: Ethereum could outshine Bitcoin in 2023 with massive growth in layer-2 transactions
Ethereum rival Cardano notes spike in accumulation by whales
Ethereum alternative Cardano network noted growth in percentage of the altcoin’s supply held by large wallet investors. Based on data from crypto intelligence tracker Santiment, key Cardano sharks have been accumulating steadily since June 2022.
Large wallet addresses have taken dip buying to a new level since the FTX exchange collapse in early November. Wallet addresses holding between 10,000 to 100,000 ADA tokens have scooped up $83 million worth of the altcoin since November 7, 2022.
ADA accumulation by whales
Cardano accumulation by large wallet investors is considered a bullish sign. Typically whale wallet accumulation is followed by mass profit taking by investors.
Cardano price is at risk of decline before the end of 2022
Cardano price is in a downtrend and the Ethereum-killer is likely to nosedive further. A crypto analyst behind the Twitter handle @21blacky believes it is the ideal time for traders to open crypto shorts.
The altcoin could plummet between 37.45% and 89% by the end of 2022 and Q1 2023.
ADA/USDT 4H price chart
Relative Strength Index, a momentum indicator rose sharply against a small increase in Cardano price signaling that the altcoin is overbought. Downside targets for Cardano are $0.1628, $0.0956 and $0.0286.
If ADA climbs above the 50-day Exponential Moving Average (EMA) represented by the orange line, the bearish thesis would be invalidated. Cardano could witness a bullish trend reversal if it breaks out from its multi-month downtrend.
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.
